Silver markets initially tried to rally during the week but then catered during the trading session on Friday, reaching down to the $15.00 level and below during the day. That being said, we are at a major support level so I do think that silver could hold, but gold has a gap underneath that still needs to be filled so therefore the gap in silver may not hold. The two do tend to move in the same direction so will have to wait and see what happens as far as that’s concerned but keep in mind that the biggest driver is going to be the Federal Reserve.
SILVER Video 08.07.19
The jobs number came in hotter than anticipated on Friday, driving up the value of the US dollar and driving down the value of precious metals. Looking at this chart, I do believe that there is plenty of support at this general vicinity, but I also think that there is significant support at the $14.75 level, and then the $14.50 level. This is a market that I am a buyer of, and not a seller. I’m simply looking for some type of reason to go long, perhaps either a supportive daily candle stick, or just a simple bounce if done with small enough of a position.
I recognize that the $15.50 level has offered a lot of resistance so if we were to turn around and break above there it almost certainly guarantees a move towards the $16.00 level which is my longer-term target. This pullback should be thought of as an opportunity to pick up silver cheaply.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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