Silver markets initially fell during the trading session on Monday, breaking down below the $15.25 level. Ultimately, this is an area that extends down to the $15.00 level, an area that was the beginning of a massive gap. By doing so, it looks as if the market is going to find buyers on this move, and I believe that the $15.00 level could be a bit of a “floor” in the market, defining it as being in an uptrend.
SILVER Video 02.07.19
This makes sense, considering that the Federal Reserve is looking likely to cut the interest rate in the United States, so that makes sense that the precious metals sector should continue to do relatively good as they are priced in those US dollars and of course inflation could become a problem down the road. With central banks around the world all cutting interest rates, it gives us a little bit of a boost, so we could see a rather large move over the next several months.
To the upside, I believe that we are going to go looking towards the $16.00 level, perhaps even higher than that. This doesn’t mean that we are going to go straight up in the air, but it’s very likely that the pullbacks will continue to offer nice buying opportunities. I have no interest in shorting this market, as the fundamentals behind the central banks around the world continue to support precious metals overall. Beyond that, the $15.00 level was a significant level of resistance to break above.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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