Silver markets rallied a bit during the trading session on Friday, reaching towards the $17.50 level. That is an area that continues to offer a lot of resistance, as it is structurally important. Silver markets tend to pay attention to $0.50 increments, as the market continues to pay attention and both support and resistance. At this point, the $17.00 level underneath continues offer a bit of support, but I think there’s even more support underneath at the $16.50 level. Beyond that, the 50 day EMA is starting to reach towards that $16.50 level, and I think at this point that could show quite a bit of interest by the long traders.
SILVER Video 26.08.19
I think short-term pullbacks continue to offer plenty of opportunity, and therefore I think that we are going to see this market not only reach back towards the $17.50 level and looking towards the $18.00 level. I have no interest in shorting Silver, because quite frankly this is a market that is reacting to central banks crushing interest rates and of course looking even more dovish. With that, I believe that silver is not only getting a boost from the lack of interest rates, but also the fact that we have a lack of growth out there and stimulus should continue to be at the forefront of trader’s minds. Ultimately, buying the dips continues to offer plenty of value and it seems that every time we drop about $0.25, there’s plenty of support to be found.
This article was originally posted on FX Empire
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