Silver markets continue to be very erratic, as we initially fell during the trading session on Wednesday before turning around to form a supportive looking candle. At this point, the $16.50 level underneath features the 200 day EMA, and that should be a bullish sign. Beyond that, the $17.00 level is an area that should attract a lot of attention. At this point, the market is likely to try to build some type of base here, but if we do break down below the 200 day EMA on a daily close, that would be an extraordinarily negative sign. Otherwise, we will probably try to bounce from here as there are plenty of reasons to believe that the geopolitical situation could continue to give a bit of a lift towards precious metals in general.
SILVER Video 28.11.19
That being said, if we were to break above the 50 day EMA, then it’s likely that the market could go to the $18.00 level above. That’s an area where we have broken down from previously, and a complete “round-trip”, which of course is a bullish sign and it could send this market looking towards the $20 level again. All things being equal, keep in mind that this is a “risk on/risk off” type of situation, being thrown around by geopolitical issues and of course the US/China trade nonsense at the same time. With that being the case, the market has pulled back quite gently considering how explosive it was to the upside, so now we can start to try to build a move to the upside.
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This article was originally posted on FX Empire
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