Silver markets have pulled back a bit during the week, but then turned around to show signs of life again. It seems as if the silver market has a bit of a magnet at the $18.00 level, and that’s exactly how we are closing out the week. The question now is whether or not we are going to consolidate, or perhaps break down. The reason I say that is that we had formed a massive shooting star, and then pulled back to form a bit of a hammer. This is one of my favorite signals, because it shows a bit of confliction when it comes to price, and therefore it’s likely that the market will eventually make an impulsive candlestick that we can take advantage of. In the meantime, short-term back-and-forth trading will probably continue to dominate the market.
SILVER Video 20.01.20
One thing that’s worth noticing is that the 50 week EMA is getting ready to cross above the 200 week EMA which is a very bullish sign. However, a pullback may be necessary in order to build up the needed momentum to go to the upside. Either way, this is a market that I think only needs some type of catalyst to get moving. There are a whole plethora of issues out there, but none of them are flaring up at the moment. If we break above the $19.00 level, then we go looking towards the $20.00 level. Alternately, if we break down below the weekly candlestick from this past week, we probably go looking towards the $17.50 level, perhaps even the $17.00 level where there should be plenty of buyers underneath.
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This article was originally posted on FX Empire
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