Silver markets rallied a bit during the trading session on Wednesday, as the markets continue to look as if they are somewhat levitated. That being said, the 50 day EMA underneath will continue to offer support, so therefore it is something that we should pay attention to, as it is a fairly significant technical indicator. At this point, if the market does rally a bit from here and clear the $18.00 level, it’s very likely that we could then go looking towards the $18.50 level. That’s an area where we have seen a lot of resistance previously, and of course the market had struggled with the previous uptrend line.
SILVER Video 16.01.20
Looking at the chart in general I believe that there are buyers underneath, and of course there are a lot of concerns out there when it comes to global growth, so that is something worth paying attention to. Silver also can work as a bit of a barrier for portfolios against the idea of negativity and fear out there, so pay attention to the overall risk appetite as well. If we were to break down below the 50 day EMA though, then I think the market probably goes looking towards the $17.00 level where there also since the 200 day EMA which longer-term traders will pay quite a bit of attention to. Below there, then you have a complete trend change. Granted, the question about the market now is whether or not that trendline break and then subsequent retest is the beginning of a sideways range, or is the beginning of something much more significant to the downside?
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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