Silver markets broke down rather hard during the day on Friday, slicing through the 200 day EMA, and crashing into the $15.00 level. By doing so, we have filled the gap on the daily chart, so at least that part of business is taken care of. With that being the case, we crash through the 50 day EMA as well, but it looks as if we are stabilizing in the middle of the session. I suspect that we could see a significant amount of trading in this area, but at this point we need to pay attention to the fact that the gold market has not filled its gap. In other words, the fact that we have filled the gap in silver isn’t reason enough by itself to start buying.
SILVER Video 08.07.19
Pay attention to the US dollar, because if it starts to rally this is a market that will probably suffer at the hands of it. If we break down below the bottom of the candle stick for the trading session on Friday, then I think the $14.75 level underneath will offer support, perhaps even the $14.50 level. I don’t necessarily want to short silver, I just think that it is an opportunity to pick up silver cheaply. Overall, I think that precious metals will continue to go higher, but overall this is all about the Federal Reserve cutting rates. They will cut rates, as Jerome Powell has already stated that they are willing to do whatever it takes. With that in mind, I suspect we will get a bounce given enough time, but silver is going to be held captive to gold. We need to see strength over there to move along here.
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This article was originally posted on FX Empire
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