Silver markets rallied quite significantly during the trading session on Tuesday as we continue to wonder where we are going to go next. After all, the European Central Bank has suggested that the regulators were more than willing to step in and start easing monetary policy yet again. If that’s going to be the case, then it’s very likely that what we are going to see is precious metals rally. Ultimately, we have a meeting by the FOMC coming out on Wednesday, and it’s very likely that the Federal Reserve will do the same thing. With that being the case it should be strong for metals overall.
SILVER Video 19.06.19
Silver markets of course have to deal with the $15.00 level, and then the 200 day EMA above there. Overall, unless the Federal Reserve is more hawkish than expected, I don’t see a scenario where precious metals don’t gain. That doesn’t mean it has to happen in the next 24 hours but we need to start thinking about the fact that the market is trying to turn itself around completely. That being said, remember that silver tends to lag gold, mainly because J.P. Morgan has so many “paper shorts” out there, but ultimately that position will be abandoned and we will break above the 200 day EMA yet again. Once we do, then I think the market goes looking towards the $16.00 level above which has been significant resistance. I think between here and there we could see a move to the $15.50 level initially, the $15.75 level after that and then the target. If we can break the $16.00 level, we could be looking at the longer-term bullish cycle.
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This article was originally posted on FX Empire
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