Silver markets have rallied a bit during the trading session on Wednesday, reaching towards the $17.00 level. At this point, the market has run into a lot of trouble in that general vicinity, and as a result it looks as if the $17.00 level is in fact a major resistance barrier. However, we have bounced just a bit from the 200 day EMA which of course is a bullish sign at the 200 day EMA is considered to be a longer-term moving average that a lot of trend traders will follow.
SILVER Video 14.11.19
At this point, silver continues to be a market that shows a lot of resiliency, but if we were to break down below the $16.50 level, it could open up the trapdoor to much lower pricing. At this point, is very likely that the market participants would have a bit of a washout, as it would be a major “risk on” move. The fact that we have pulled back from the $17.00 level is a bit negative though, and at this point we are essentially squeezing between two major moving averages in the form of the 50 day EMA sloping lower.
I expect more volatility in this market, and perhaps more of an upward slant in the short term. There will be a major amount of choppiness in the short term, so those who are more or less “reversion to the mean” type of traders may find silver to their liking.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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