Silver markets gapped higher to kick off the trading session on Monday, as fears about global growth continue to be a major issue. With that in mind, it makes quite a bit of sense that the market would run to precious metals as people are worried about the Chinese economy, and of course the coronavirus. All things being equal though, that it’s just noise and at the end of the day you should pay attention to the overall market attitude. As fears continue to grow, so will the price of silver. That being said, the market is likely to fall apart if things come back down. The 50 day EMA underneath could offer a bit of support near the $17.65 level, and that could be a bit of support. Having said that, the market was to break above the top of the shooting star, then it’s likely that we will go looking towards the $19 level.
SILVER Video 28.01.20
More than likely, this is a market that will continue to see a lot of noise in general, especially as we have so many concerns going back and forth around the world. Keep in mind that silver does tend to follow gold, so pay attention to that market as well. If the US dollar gets hit a bit, it’s likely that it could also drive up the price of silver as well. At this point, this is a market that continues to be noisy and that’s probably the most important thing that you should pay attention to. Keep in mind that you should keep your position size relatively small when it chops around like this.
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This article was originally posted on FX Empire
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