Silver markets went back and forth during the trading session on Monday as markets look for some type of directionality in order to move further. The $18 level of course is an area that would attract a lot of attention and therefore I think it is not a huge surprise to see that the market would sit here. Keep in mind that the central banks around the world printing currencies will continue to drive metals markets higher given enough time, but the biggest problem that silver has is that it is also an industrial metal. In other words, it needs industry to demand more components and therefore it needs growth.
SILVER Video 30.06.20
To the upside I see the $19 level as major resistance, and as a result if we can break above the $19 level it is likely that the silver market will go looking towards the $20 level, and as a result would signify extreme strength. In the past, right after the Great Financial Crisis, once the market broke above the $20 level, it shot straight up in the air in a parabolic move to $50. I do not necessarily think that is going to happen in the short term, but I do think the market will have a nice run after breaking above the $20 level.
To the downside, it looks as if the 50 day EMA at the $17.17 level in the 200 day EMA at the $16.71 level should both offer support. In fact, that creates a little bit of a range of support that has its center around the large figure at $17.
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This article was originally posted on FX Empire
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