Silver markets went back and forth during the trading session on Thursday, showing signs of stability just below the $18.00 level. If we can break above that handle though, it’s likely that the market could go towards the $18.50 level as it would coincide with the massive shooting star that sent this market lower. That being said, it is worth noting that the 50 day EMA so far has offered nice support.
SILVER Video 17.01.20
Looking at this chart, you can see the previous uptrend line has offered resistance as well, so there should be plenty of interest in that area. I believe this point we are going to continue to see a grind higher more than anything else, and therefore it should be paid attention to through that lens, buying short-term pullbacks in an attempt to continue going higher. With a little bit of artistic license, you can even make an argument for a bullish flag forming on the daily chart.
To the downside, if the market was to break down below the 50 day EMA it’s likely that it will go looking towards the 200 day EMA which at that point would be very close to the $17.00 level. This of course is a real possibility, but it is worth noting that gold is starting to look somewhat bullish, and that could drag silver right along with it. At this point, I do favor the upside, but I recognize that there is the possibility of the downside as well. It’s very likely that any move higher is going to be very choppy though, so keep that in mind and keep your position size small.
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This article was originally posted on FX Empire
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