Silver markets have gapped higher to kick the week off, pull back to fill that gap, and then rally again. At this point though, it looks very likely that we are going to continue to see support underneath but we are a bit overextended. With that, I think that the market will continue to look at dips as potential buying opportunities but I would be a bit cautious about buying up here considering that we are so overbought. When you look at the chart you can see just how parabolic it has been, so I’m looking for an opportunity to get involved based upon value more than anything else. Momentum at this point could cut in both directions.
SILVER Video 03.09.19
To the downside I suspect that the $18.00 level will continue to offer support, and beyond that I’m sure that we also see a massive support at the gap underneath which has yet to be filled near the $17.50 level. In other words, I think that a pullback makes quite a bit of sense as we have gotten a bit ahead of ourselves recently. Markets can’t go in one direction forever so I look at pullbacks as a potential opportunity and look at the same pullbacks as beneficial for the buyers. I would not be looking to sell this market even though I do think that we fall rather soon. To the downside, I believe that the “floor” is closer to the $17.00 level, and I think that the market will fight at that point to keep the uptrend going.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/USD Daily Forecast – Brexit Fears Dominate Sterling
- AUD/USD Price Forecast – Australian dollar continues to drift lower
- Silver Price Forecast – Silver markets continue to grind higher
- Technical Recession: What it is and How the Trumpian Era Driving The Economy to a Potential Recession.
- Pound on the Rocks as Rumours of Snap Elections Mount
- Gold Price Prediction – Gold Trades Sideways, a Stronger Dollar Weighs on Prices