Silver markets have been on fire as of late, but quite frankly they have gotten way ahead of themselves. We have had a couple of days of extreme negativity, but at this point it’s likely that the trend line underneath will be tested, perhaps even the 50 day EMA. I think at this point it’s likely that we see buyers somewhere near the trend line or the 50 day EMA, and therefore take advantage of which should be perceived as value closer to the $18.00 level. There’s also the gap just below there as well, so this could be a sloppy trend line test.
SILVER Video 10.09.19
Reaching towards the upside I think we will eventually go looking towards the $20 level, but it’s probably going to take some time to get there. Obviously, central banks around the world continue to loosen monetary policy, and therefore it makes sense that precious metals continue to rise over the longer-term. Ultimately, I think that this market will continue to go looking towards higher levels but it also continue to struggle for directionality over the next couple of days.
All it’s going to take is some type of negativity or nonsense coming out over Twitter to get the markets going again. Keep in mind that silver looks like it had gotten overdone, and that’s typical in a market that continues to attract a lot of attention. Now that the late traders are starting to lose money, the core can take over again.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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