Silver markets initially fell during the week, testing the uptrend line in order to find some type of stability. The fact that we have formed a hammer yet again shows just how resilient this market is. The last five weekly candlesticks have formed for hammers. This tells me that there is a lot of value hunting underneath and we will continue to press to the upside. However, if the market was to break down below the uptrend line that would be catastrophic as it would show a ton of support simply wiped out of this market. At that point I would anticipate that the market would go to the $17.00 level, and then eventually the $16.75 level. After that, we are looking at a move towards $16.50.
SILVER Video 17.02.20
Keep in mind that the fears about coronavirus continue to be an issue, and therefore it makes quite a bit of sense that precious metal get a bit of a boost. If that gets under control, then it takes one of the reasons for silver to continue going higher away. However, the central banks around the world continue to loosen monetary policy and that lifts precious metals overall. At this point, the market should continue to go towards the highs again. The $19.00 level above is an absolute top, and therefore if we can break above there it would show significant bullish pressure to the upside. The market continues to buy dips, so I think that’s probably the way you have to play this on shorter-term charts. A longer-term position would simply be a matter of holding onto the gains.
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This article was originally posted on FX Empire
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