Silver markets pulled back a bit early in the session on Wednesday but continued to dance around the $18.00 level as it of course will attract a lot of attention. Going forward, it probably comes down to whether or not the Federal Reserve is going to be only slightly dovish, or perhaps extremely so. The next 24 hours will be crucial as to what happens with the crude oil markets but it should be mentioned that we are most certainly in a strong uptrend, and also have the 50 day EMA just below. If we can retain pricing above the 50 day EMA it’s likely that we will continue to go higher given enough time.
SILVER Video 19.09.19
This doesn’t mean that we couldn’t get the occasional nasty pullback, quite frankly I would expect it. To the upside, it’s very likely that the markets will go looking towards the $20.00 level given enough time, assuming that we continue the uptrend. If we were to break down below the $70.00 level, at that point we could lose another $1.00 in a significant pullback. At this point though, there’s nothing to suggest that we won’t continue to find buyers, unless of course the Federal Reserve is shockingly hawkish. The daily close being green would be a signal to start buying again. Otherwise, we could see quite a bit more volatility going forward, but ultimately short-term dips should end up being buying opportunities barring some type of nasty shock. I remain bullish overall.
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This article was originally posted on FX Empire
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