Silver markets fell a bit during the trading session on Thursday, reaching down to fill the gap again. That being the case, the $15.25 level is a support area, but if we do break down below there it’s likely that we will test the 200 day EMA underneath which is colored in blue. That being the case, I suspect that the buyers could return but let us not forget that we have a massive gap underneath that hasn’t quite been filled yet, stretching down to the $15.00 level. Ultimately, this is a market that is going to be driven by the US dollar which of course is going to be driven by the jobs number on Friday.
SILVER Video 05.07.19
All things being equal though, I am bullish of silver longer-term and therefore I think that a pullback towards the $15.00 level actually represents a nice value that I’m willing to take advantage of at the first signs of a bounce. To the upside, if we were to turn around and break above the $15.50 level, then we probably go to the $15.75 level, perhaps even the $60.00 level after that. I expect a lot of volatility, but quite frankly this will probably be dollar driven more than anything else.
As we are above both the 50 and the 200 day EMA indicators, I suspect that longer-term traders are starting to look at this as a potential investment as well, and that of course helps. Ultimately, buying dips continues to be the best way to play this market from everything I see.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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