Silver markets have rallied a bit during the trading session on Friday, breaking higher but then giving back a bit of the gains once we get above the $18.00 level. The $18.00 level seems to be an area that is very attracted to the market in general, so having said that I believe it’s only a matter of time before we have to make some type of decision. The 50 day EMA is just below so that should continue to attract a lot of attention in the manner of support. To the upside, I believe that the $19.00 level will probably be a bit of a resistance barrier as well, considering that is where the market had pulled back from the shooting star that formed last week. Nonetheless, there are so many moving pictures and pieces out there that it’s possible that silver gets a boost from either things we know, or some new problem with the global markets.
SILVER Video 20.01.20
The Federal Reserve is likely to have a very loose monetary policy, and that probably extends quite a bit into the future so I do like silver longer term, but I recognize that the volatility will continue to be an issue. With this, I like the idea of buying dips, and I think that the 50 day EMA is just as good of a place to do so as anywhere else on this chart. I would not get overly involved in the market right away, rather I would build up a position to take advantage of what I think is sustained momentum longer-term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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