Silver markets have been very bullish during the trading session on Friday as we initially pulled back and gapped lower but have found the 50 day EMA to be supportive enough to turn around and rally above the $18 level. Because of this, it looks as if the market is going to try to go higher, using the 50 day EMA as a potential buying opportunity as it is so support longer term. At this point, the market looks as if it is ready to go towards the $19.00 level, an area that coincides nicely with the previous uptrend line that should now be resistance. All things being equal though, I think that it’s only a matter of time before buyers get involved on dips anyways, as silver will tend to track right along with gold which looks very bullish.
All things being equal, it’s very likely that the market is one that you continue to buy on dips, as silver is a bit of protection against concerns globally when it comes to things like the coronavirus slowing down the Chinese economy. Remember, the silver market is not only influenced by the industrial demand for silver, but also the idea of what precious metals in general are doing. If we can break above the $19.00 level it will finally open up the gates to reach towards the $20.00 level. A break down from here has plenty of support at the $70.00 level as the 200 day EMA is in that vicinity.
This article was originally posted on FX Empire
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