Silver markets went back and forth during the trading session on Friday, initially pulling back but then turning around to form a hammer. At this point, the market is testing a recent highs near the $18.05 level, and that of course the previous uptrend line. At this point, the market is likely to continue to be cautious at this point, and I think a pullback would make quite a bit of sense, even if we do break out to the upside. Keep in mind that the silver markets will a lot of different factors, not the least of which will be the fact that central banks around the world continue to loosen monetary policy.
SILVER Video 30.12.19
If the market does break above this uptrend line though, then it’s very likely that silver goes much higher, reaching towards the $20 level. Ultimately, the market will probably continue to pay attention to the moving averages below, including the 50 day EMA which is suddenly turning higher. It’s worth noting that the silver markets have bounced from the 200 day EMA and of course the 61.8% Fibonacci retracement level. Overall, the market looks as if it is trying to break out but the fact that we are at the wrong time of year to place heavy positions makes be a bit cautious. Again though, if we break above the $18.05 level, then it’s time to start buying. Otherwise, a pullback to the 50 day EMA that shows a bit of a bounce could be a buying opportunity as well. Ultimately, we have a lot of decisions to make in the short term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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