Silver markets have rallied a bit into the weekend, as the market is dancing around the 50 day EMA yet again. We have recently bounced from an uptrend line, so that of course is a bullish sign as well. Given enough time, the market should then go looking towards the $18.00 level and as long as there is some type of fear out there, it makes sense that perhaps silver could get a bit of a bit, and quite frankly we have been in an uptrend anyway.
SILVER Video 17.02.20
Central banks around the world continue to have loose monetary policy and that helps precious metals at the same time, so I don’t have any interest in trying to short either silver or gold. With this being the case, the market also has significant support at that previously mentioned uptrend line and the 200 day EMA which sits just below that trend line and just above the $17.00 level. Ultimately, I believe that this market will continue to show a proclivity to the upside, so I like the idea of buying little bits and pieces along the way. Longer-term, I anticipate that silver is going to go looking towards the $19.00 level again, and then possibly even the $20.00 level over the longer term.
If we were to break down, we would need to clear the 200 day EMA on a daily close in order to think about shorting. At that point, it’s likely that the market probably goes looking towards the $16.00 level after that. Ultimately, this is a market that I believe continues to show a possibility of buying dips until something changes significantly on the risk appetite side and of course the global headlines.
Please let us know what you think in the comments below