Silver markets went back and forth during the course of the week, showing signs of exhaustion at the $17.00 level. We are just above the 200 week moving average, which is a very bullish sign but at this point it’s very likely that precious metals may have gotten a bit ahead of themselves. Silver isn’t as overbought as gold, but as you know, silver is highly influenced by gold. At this point I think we probably get an opportunity to pick up silver closer to the $16.50 level based upon the Gold chart, and of course the fact that precious metals are extraordinarily overbought. That being said, I’m not looking to sell this market as I believe that the trend has most certainly changed.
SILVER Video 19.08.19
There is a lot of noise above that will probably cause some issues, but I think that will eventually be broken. We probably need to pullback just in case in order to build up enough momentum to finally break out to the upside. Ultimately, the market continues to look bullish, but obviously markets can’t go in one direction forever. I think that there is essentially a “floor” at the $16.00 level so if we were to break down below there I would have to rethink the entire situation. Until then, I look at pullbacks as potential value, as central banks easing monetary policy has had money flying towards precious metals for several weeks as I’m sure you’re aware of by now. Longer-term I anticipate a move towards the $18.00 level, and then possibly even as high as $20 after that.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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