Silver markets went back and forth during the trading session on Friday as we are trying to figure out where to go next. Quite frankly, this is a market that does look very explosive and at this point we may be starting to run out of momentum. That doesn’t mean that we should be sellers though, that means that we should be looking at pullbacks as a possible value play. The $16.00 level underneath is massive support from what I see, and I would expect to see buyers come back into the market in that general vicinity. Even if we did break down below there, I think there’s even more support at the $15.50 level as well.
SILVER Video 29.07.19
Looking at this chart, I think that we are trying to reach towards the $17.00 level, which I think is extraordinarily strong resistance. If we can break above there, then Silver markets could really start to take off to the upside for the long term. Ultimately, this is a market that you should continue to pick up on dips, especially if the Federal Reserve is going to continue to not only cut interest rates but sound soft in its statement coming up as well.
In a world where central banks around the world continue to cut interest rates, as well as do quantitative easing, the reality is that people will be looking towards the precious metals to preserve wealth. All of the fundamentals are lining up for higher precious metals markets, so I simply wait for pullbacks to produce buying opportunities.
Please let us know what you think in the comments below