Silver markets went back and forth during the trading session on Tuesday, as we continue to hover around the $15.85 level. The 20 day EMA has offered support during the previous session, forming a hammer. Ultimately, it looks as if the market is ready to go towards the $16 level, an area that of course will attract a lot of attention due to the large round figure. Beyond that, I do believe that the market will probably go looking towards the $17 level eventually as the larger consolidation area dictates. At this point, I don’t have any interest in shorting Silver.
SILVER Video 06.02.19
The Federal Reserve stepping away from its hawkish stance of course is bad for the greenback, which should send Silver higher longer term. Overall, we have been in a nice uptrend, so I think it’s only a matter time before we show signs of buying again. I do like silver from a low leverage standpoint, perhaps even physical silver as I think it is only a matter time before we gain significant strength.
The 20 day EMA, pictured in green, and the 200 day EMA pictured in black both offer significant support. Pullbacks should continue to be buying opportunities, and I think that the first sign of a bounce is reason enough to go long. However, I would build up my position rather small to start with, and then add as we make a fresh, new highs. Overall, this is a market that I think will move according to what’s going on with the greenback.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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