Silver markets got hammered during the week, reaching to extraordinarily low levels, breaking the back of a couple of hammers from previous weeks. However, we have seen a complete turnaround as traders continue to worry about the coronavirus. At this point, the market is likely to continue to see buyers underneath, so on pullbacks it’s very likely that silver will attract a lot of attention to it. The $18 level looks to be important, and therefore it makes quite a bit of sense that we see markets react again and again as they have recently. The massive candlestick that we have formed for the week is very impressive, and that tells me that there are more than enough buyers underneath to lift this market. This will be especially true if global markets continue to be concerned about the coronavirus.
Because of this major “risk off” market that we are in right now, it makes sense that precious metals in general will continue to have quite a bit of attention attached to them, and while gold is the first place that people typically go to, it’s obvious that silver is going to try to make a move towards the $19.00 level above. That is an area that has been resistance previously, so it makes sense that we continue to see that area attract a lot of attention as well. Right now, that’s my target but I also recognize that you may get an opportunity to pick up a bit of a pullback in order to pick up value and should look at pullbacks as value in this market. The explosive candlestick of course shows signs of increased volatility, thereby showing signs of increased interest.
This article was originally posted on FX Empire
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