Silver markets went back and forth during the course of the week, falling slightly to close it out. The $16 level above of course is crucial as it is a large, round, psychologically significant figure. If we can break above there, then it will bring fresh money into the market and push towards higher levels, specifically the $17 level eventually. If you look at the 20 EMA, it is at the $15 level, and is starting to turn higher. I think that tells us that at this point short-term pullbacks should be buying opportunities. I think that the $15 level should be massive support, and a break down below there would of course change the lot of things.
SILVER Video 14.01.19
With the Federal Reserve stepping away from its hawkish stance over the last couple of weeks, this of course has put some bearish pressure on the US dollar. That in turn has lifted the Silver markets, giving them a bit of a reprieve and some momentum to the upside. I think that value hunters will continue to be attracted to pullbacks, and I also think that momentum traders will be waiting above the $16 level to start buying as well. I have no interest in shorting the silver market, at least not until we break down below the $15 level, and decidedly so. Even then, I would be a bit cautious about doing so. I believe that we have seen the bottom for this cycle over the last couple of months.
This article was originally posted on FX Empire
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