Silver markets rallied a bit initially during the trading session on Tuesday to test the $17.50 level before rolling over. Because of this, it’s very likely that the market is starting to get a bit exhausted, as we turned right back around to reach towards the $17.00 level. However, the large figure will attract a lot of attention in both directions. Because of this, I think that even if we do fall from here or there will only be an opportunity to buy at lower levels. Now that we look likely to pull back, I will be very interested in the $16.50 level if we can pull back to that area, which I think would be massive support. Even below there I think the $16.00 level also offers an area where you could be a buyer.
SILVER Video 14.08.19
The 50 day EMA is reaching towards the $16.00 level, so that is essentially the “floor” in our market. Keep in mind that the Federal Reserve is likely to continue to cut rates going forward, and most certainly other central banks around the world will. With that in mind it makes quite a bit of sense that the precious metals market should continue to strengthen. Silver will of course move right along with gold, which of course has ran into a bit of trouble during the day but is very bullish overall. With this, it looks as if short-term pullbacks will continue to offer buying opportunities in order to trying to take out the $17.50 level above, which I see as the “ceiling.”
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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