Silver markets went back and forth during the trading session after gapping higher on Wednesday, showing a clear range as to where the market wants to deal with. The $15.25 level underneath should be support, while the $15.50 level above should be resistance. That being the case, it makes a lot of sense that you should look towards extremist to play off of. Overall though, we are above the 200 day EMA so Silver should be somewhat bullish. Pay attention to the US dollar, because as it falls in strength it makes precious metals look much better.
SILVER Video 04.07.19
Looking at the economic situation, we do see a lot of central banks out there looking to ease monetary policy, so quite frankly it makes sense that precious metals should continue to be in demand. Underneath, we have the 200 day EMA at the $15.16 level, and then of course the $15.00 level underneath which is the scene of a gap both offering support. If we can break above the $15.50 level, then the market should go looking towards the $16.00 level which has been my longer-term target. That being said, if we were to break down below the $15.00 level, then the market could very well go down to the $14.75 level, possibly the $14.50 level after that. Ultimately, this is a market that has quite a bit of strength underneath it, so I believe it’s only a matter time before the buyers come back in to pick up value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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