Silver markets fell rather hard during the session on Monday, slicing through the $14.75 level, showing just how difficult it’s going to be to continue to go higher. What’s even more interesting is that the candle stick from the day wiped out a couple of very bullish candlesticks. As the market continues to show the $15 level as important, a certain amount of attention needs to be paid to this place. Quite frankly, the candle stick for the Monday session is crucial, because if we can break down below it I think that we could go down to the $14.50 level.
SILVER Video 11.06.19
The alternate scenario is that we try to recover, but it’s obvious that the $15 level will be very difficult to break above, and ultimately I believe that the markets continue to be very scattered as far as appetite is concerned, and of course risk aversion. This is a market that seems to have a lot of negative pressure above it, as silver has not been able to rally as much as Gold had been in the past. There is a lot of synthetic short positioning in this market via derivatives, so it does struggle to rally longer-term. However, if we were to break above the highs of the session on Friday, then we probably go looking towards the $15.33 level which is the 200 day EMA. Overall, I think it is going to be a day-to-day situation, but clearly Monday has been a shot across the bow of the bullish traders, and therefore I think a pullback is probably more likely than not.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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