Silver markets have rallied significantly during the trading session to reach towards the 50 day EMA yet again. The 50 day EMA seems to be a bit of a magnet for price, as we are grinding back and forth with a slightly upward bias over the last couple of months. I do think that eventually we go looking towards the $18.00 level above, which could cause a certain amount of resistance as it is a large, round, psychologically significant figure. If we can break above there, then the market could go looking towards the $18.50 level and then eventually the $19.00 level. At this point, the market is still in an uptrend and silver looks to be offering value, so that’s probably the one thing you should be paying attention to.
SILVER Video 14.02.20
At this point, as long as we can stay above the $17.00 level I’m not interested in selling. That doesn’t mean that I’m willing to buy every time it pulls back, just that I have an upward bias. Longer-term, I believe that this market will probably go looking towards the $20.00 level above as a potential target. If we can break above there, then it would begin some type of “super cycle” in silver, but we are a long way from having that happen. Ultimately, I like the idea of buying dips, but I look at more or less is building a longer-term core position. I would not over leverage myself in this trade, because silver can be very erratic. To the upside, it’s very likely that we will see a lot of resistance but given enough time we should see buyers overwhelm the sellers again.
Please let us know what you think in the comments below