Silver markets broke above the highs of the previous session on Wednesday, showing signs of real strength. By breaking above the $15.75 level, it suggests that we are ready to go to the next major level, the $16.00 level. Underneath, I see the $15.50 level as support, as it was a previous resistance barrier, and therefore it’s likely that the area should offer a lot of support. I think that it is only a matter of time before the buyers would come back in that area. If we did break down below the $15.50 level, then the market will more than likely look towards the 50 day EMA, or perhaps even the 200 day EMA.
SILVER Video 18.07.19
We are a bit overextended at this point, and at this point I think that it is only a matter time before we get some type of value play, and obviously shorting Silver right now would be very difficult. Signs of exhaustion could be hints to get out of the market, but I think it’s much easier to buy that short-term pullbacks. Overall, this is a market that shows that it understands that the Federal Reserve is going to be cutting interest rates, and that should drive up the value of precious metals in general. That being the case, I believe that we will not only reach towards the $16.00 level, but possibly higher than that.
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Late Session Rally Fueled by Dovish Fed Member Comments
- EUR/USD Price Forecast – Euro continues to flounder
- US Stock Market Overview – Stocks Trade Mixed, as Gold Miners Surge
- Major Cash, Futures Stock Indexes Turn Higher after Fed’s Williams’ Bullish Signal
- Crude Oil Price Forecast – Crude oil markets continue to struggle in general.
- USD/JPY Price Forecast – US dollar pulls back against yen to find buyers