Silver markets did very little during the trading session to dissuade the sellers as we have been struggling to find direction. The market has recently pull back from the $15.00 level and it looks very likely that we are going to continue to see more bearish pressure than anything else. If we break down below the $14.00 level, then it’s likely that the market could go down to the $13.00 level which was the top of the consolidation area below. That should then offer plenty of support.
SILVER Video 01.04.20
A bounce from that area should be a nice buying opportunity, as it would be a “higher low.” By doing so, it could get a bit of a bottom going, and perhaps be the catalyst that silver needs in order to turn around longer term. If the market were to break above the $15.00 level, then the market could go looking towards the 50 day EMA above. After that, we could even be going towards the $17.00 level.
Keep in mind that the silver markets are a bit different, due to the fact that although they are a precious metal, silver also has a major industrial component which of course is suffering in current trends. Ultimately, this is a market that I think probably pulls back before finding buyers. I’m not necessarily interested in shorting this market, rather I am looking for value for the longer term. I like the idea of owning silver, but I would be cautious about adding too much leverage into the position. Be cautious, but I do like the idea of picking up value.
This article was originally posted on FX Empire
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