Silver markets have pulled back just a bit during the trading session on Tuesday as the $19.00 level continues offer significant resistance. This is an area where we have seen quite a bit of selling in the past, so it makes quite a bit of sense that it would continue to be resistive. Ultimately, I believe that the market will probably continue to be very noisy, but I believe that we will also make a move towards the $18 level sooner rather than later. If we were to break above the $19.00 level, then we could make a move towards the $20.00 level which is a large, round, psychologically significant figure and will attract a lot of attention.
SILVER Video 03.06.20
If we were to break down below the $18.00 level, we could go down to the $17.25 level, which is where the bottom of the recent consolidation area had been carved out. Ultimately, this is a market that I think is also paying attention to the “golden cross”, where the 50 day EMA is starting to break above the 200 day EMA. I expect a lot of volatility regardless, which of course is the standard MO for silver in general. I think we need to continue to see a “building up process” in order for the market to go higher. On the other hand, keep in mind that the silver market is overly sensitive to the industrial demand equation, which is a bit of a mixed picture at the moment to say the least.
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This article was originally posted on FX Empire