Silver markets have rallied during the bulk of the week, only to fail at the $19 level yet again. This is an area that has been difficult to break out of, and at this point we are closing out the week at $18.30 or so. This ended up forming a bit of a shooting star, which was followed by two hammers. In other words, this is a market that I probably go sideways for the time being. With this, we are essentially range bound between the $17 level on the bottom and the $19 level on the top, and do not really have anywhere to be anytime soon.
SILVER Video 06.07.20
Furthermore, the 50 week EMA is trying to cross the 200 week EMA but they are both pretty flat so I would not read too much into that. I like the idea of buying dips more than selling, because quite frankly there are plenty of reasons out there to think that silver and other metals should go higher, not the least of which will be the massive amounts of quantitative easing that traders are navigating coming out of central banks such as the Federal Reserve, Bank of Japan, and Bank of England.
With that in mind, I do expect that silver will eventually take off but keep in mind that it also has a bit of an industrial component to it, so it may lag in comparison to the gold market. Gold markets are trying to break out right now and are making quite a bit of progress. If they accomplish that, silver should come right along with it.
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This article was originally posted on FX Empire
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