Silver markets rallied during the trading session on Monday, reaching towards the $19 level, but did not manage to reach it completely. Because of this, it looks like the support underneath is going to continue to try to push this market above the $19 handle which has offered extraordinarily strong resistance. If we do break above the $19 level, it is likely that the market could go towards the $20 level, but at this point we still need to build up enough momentum to finally make that breakout. It is interesting about silver is that it has been dragged higher due to the gold markets, but at the same time silver has to worry about industrial demand, something that gold does not have to worry about.
SILVER Video 07.07.20
Industrial demand for silver is still a bit of a question, so I think that might be one of the main reasons that silver is dragging a bit. However, the markets look likely to continue finding buyers on dips, and I do believe that the $18 level underneath will continue to be supportive, but underneath there we also have the 50 day EMA. The $17 level after that offers plenty of support as well, and I do think that we are grinding to the upside overall. With this in mind, I think that we are in a market that you should be buying dips, not necessarily trying to get too cute at the top and start shorting. If we break down below the $17 level, then we can start to have a different conversation but right now it does not look highly likely to be a concern.
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This article was originally posted on FX Empire
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