Silver markets rally significantly on Wednesday
Silver markets had a very bullish session on Wednesday, breaking above the $17 level rather handily. By doing so, it looks as if we are ready to continue going higher, perhaps reaching towards the $17.25 level rather quickly. I believe that the market will eventually find reason enough to go much higher, but I think we are a bit overbought on the short-term charts. When you look at the Bollinger Bands indicator on the hourly chart, we have broken above the top of that indicator, suggesting that we are overbought. I think that a nice pullback will probably offer support somewhere near the $16.80 level, or perhaps even the $17.00 level as it is psychologically important.
I believe that this market continues to have a lot of pent up energy built into it, as there is a major situation when it comes to concerns about trade wars and geopolitical concerns. That has people looking into precious metal markets for safety at times, although the US dollar could strengthen, working against this move. Currently, it looks as if the market is ready to continue to find buyers though, and I feel it’s only a matter of time before that happens. The market participants continue to be very aggressive in this market, as is typical with silver itself, being such a volatile futures contract.
I like buying physical silver and of course buying small bits and pieces in the CFD market, as the futures market can be a bit volatile when it comes to profit and loss. I think we will continue to see a lot of noise, but with an upward bias overall.
SILVER Video 19.04.18
This article was originally posted on FX Empire
