Silver markets gapped higher during the trading session on Monday, but then went sideways in general. At this point in time, the market looks likely to continue to go higher over the longer term, but I think we need to see a bit of a pullback in order to offer a bit of value. The $25 level would be very interesting to be a buyer at, especially if we see some type of bounce from that level. Underneath there, the $24 level is even better, and of course $22 would be great. Regardless, the theme here is that we need to be buying dips in silver as it is so bullish in general.
SILVER Video 11.08.20
The 50 day EMA is approaching the $22 level, so I think that will offer a significant floor if we get down to that level. That being said, I have no interest in shorting, even if you did tell me that it was absolutely going to fall in the next couple of days. Simply waiting for the trend to catch back up and buyers to get involved is the best way to play this market, especially as silver is so volatile. To the upside, I still see the $30 level is a major barrier that could keep the market somewhat down for the short term, but I believe that it is only a matter of time before we break through there. Nonetheless, we are a bit parabolic at this point so it does make sense that we would need to take a bit of a breather. Look at that as a value opportunity.
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This article was originally posted on FX Empire
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