Silver markets fell a bit during the week, as the $16 level has offered a massive resistance. What I find interesting about the $16 level is that it coincides with previous support, so that of course could be resistive. Beyond that, we also see that it is the 61.8% Fibonacci retracement level from the massive selloff earlier this year. If that’s going to be the case, it’s likely that we will see a lot of tenacity by the sellers in this area. That being said, if we can get a weekly close above the $16 level, it would be an extraordinarily bullish sign.
SILVER Video 11.02.19
Much of what we have seen lately has been due to the Federal Reserve stepping back from its hawkish comments, and that of course works against the value of currency in general, but especially the greenback. If that’s going to be the case, then precious metals should continue to go higher. However, I think that at the very least we need to grind back and forth to build up enough momentum to go higher.
I believe that we have a couple of rough weeks ahead of us when it comes to Silver, but I do think that if you let the market come back to you, you can find value underneath. If we break above the top of the shooting star from the previous week, that not only is bullish because of a break above the $16 level, but it is a fresh, new high.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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