Silver markets rallied significantly during the week, slamming into the bottom of the previous uptrend line, which of course should offer quite a bit of resistance. As we close out the week it certainly looks as if we are doing just that, pulling back from the trendline. If we break above that area, roughly the $18.05 level, then the market is likely to go much higher. However, we are overbought at this point so don’t be surprised at all to see this market pullback. The next question of course is whether or not it’s a pullback or a continuation of a breakdown.
SILVER Video 30.12.19
I think at this point, a lot of traders will probably be on the sidelines until after New Year’s Day, and it’s really not until January 6 that we will have full liquidity back as we not only have the New Year’s Day holiday, but we also have the jobs figure coming out of the United States shortly thereafter. With this, it does look like we are starting to get bullish again, but I would hold off on longer-term positions for at least another week as we could get a lot of choppy trading in the short term. Focusing on shorter-term charts probably will be the best way going forward, and therefore it’s ultimately a scenario where we need to be very cautious or perhaps even on the sidelines in general between now and the January 6 session. All things being equal, this is a market that is a bit overextended again, and does tend to move rather rapidly.
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This article was originally posted on FX Empire
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