Silver markets continue to be very volatile, but what is worth paying attention to is that the 200 week moving average has offered enough support to turn things around slightly. It looks as if the market is trying to build a bit of a base here, but what is for sure is that the massive breakdown candle from a month ago still looms large. If we were to break down below the recent lows, then we could target the $16 level, and quite frankly silver is going to be moving based upon trade concerns or the latest “risk on/risk off” headline.
SILVER Video 02.12.19
That being said, the last couple of weeks have been rather stable and that’s exactly what silver needs to continue going forward. Overall, this is a market that will probably be difficult for longer-term traders to hang on to quite easily, but if we were to break down, I suspect that the $16 level will offer massive support as it was previous resistance. On the other hand, if we break above the highs of the last couple of weeks, we could go back towards the $18 level next. Either way, unless you are an investor it’s going to be difficult to hang on to the silver market. All things being equal, the market should continue to go higher over the longer term, but right now you may have to endure some pain if you are hanging on to a silver position. It is because of this that I do not like the idea of a lot of leverage.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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