Silver markets have gapped higher to kick off the trading session on Wednesday, and then reached to the upside barrier at the psychologically important $18.00 level. This is an area that of course will attract a certain amount of attention as it is a round number, but beyond that it’s also an area where we have seen the market flip back and forth, so obviously there’s a lot of interest there. All things being equal, if we can break above the downtrend line that crosses through the $18.00 level, then the market should continue to go much higher, perhaps reaching towards the $18.75 level.
SILVER Video 10.10.19
Underneath, the 50 day EMA should offer a bit of support, just as the uptrend line well. At this point, the market is obviously winding itself up for some type of bigger move, and I still believe that move is to the upside. With that, a move above the $18.00 level is a sign that the buyers have finally taken over. To the downside, it’s not until we break down below the $17.00 level that I would be concerned. I do not think that happens in the short term, unless of course there is some type of major breakthrough in the US/China trade situation or perhaps the Federal Reserve looks likely to suddenly tighten rates, something that seems to be all but impossible. Given enough time, I do believe that the longer-term uptrend reasserts itself so I still look at short-term pullbacks as buying opportunities.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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