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Silver markets initially dipped during the trading session on Friday but then turned around to show signs of strength again. At this point in time, the $28 level above is a large, round, psychologically significant figure that could come into play, and of course a structurally important level as we have seen resistance, they are more than once. At this point in time, if we can break above the $28 level, then it is likely that we go much higher. Ultimately, this is a market that could open up a move towards the $30 level, as we have seen that be a target more than once. If we can break above there, then it is likely that we could go breaking towards the $50 level. That has been the historical move over time silver has gone into a massive bullish run.
SILVER Video 17.05.21
To the downside, the 50 day EMA sits at the $26.30 level, and therefore it is likely that we will see support in that general vicinity, especially as it is supported by the $26 level. If we were to break down below there, then it is likely that we could go down towards the 200 day EMA. Nonetheless, the market is likely to see buyers jump into this market as people are still banking on the reopening trade, and of course the fact that silver has such a huge demand structure when it comes to industrial usage. The demand for silver when it comes to “green energy” is a major theme right now, and of course will have the US dollar falling which presents a bit of a tailwind for precious metals in general, which of course silver also is influenced by.
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This article was originally posted on FX Empire