Silver markets have rallied during the week, reaching towards the $15.00 level, an area that is a large, round, psychologically significant barrier, and also an area where we have seen a lot of selling in the press. Ultimately, this is a market that looks like it is struggling a bit during the trading session on Friday, and it suggests that perhaps we are going to roll over a bit. That being said, it doesn’t necessarily mean that we are going to break down completely. I think that we are trying to form some type of range, in order to form a bottom. The $15.00 level above would be massive resistance, just as the $13.00 level underneath or somewhere in that general vicinity, we should see massive support.
SILVER Video 30.03.20
Quite frankly, after a meltdown like we’ve seen it’s like the market doesn’t quite believe the rally initially, and therefore they are looking for confirmation on a pullback. That is how this consolidation range will form, of course people will be paying attention to not only the precious metal aspect of silver, but also the industrial metal aspect which of course has seen very little in the way of demand. With that being the case, it’s very likely that the back and forth is difficult to deal with but if you are a longer-term trader, you will appreciate the fact that this market should give you plenty of time to get involved. Adding slowly is probably the best way to go, because silver does tend to be a bit more volatile than its cousin gold. With that being the case, I do think that we will get a buying opportunity, but it will be at lower levels. Alternately, if we were to break above the high of the previous week, then we probably go looking towards the $16.50 level.
This article was originally posted on FX Empire
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