Silver markets initially rallied during the trading session on Thursday but gave of the gains as we continue to see the $19 level offer a significant amount of resistance that is going to come into play and send this market back down every time we try to crack it until we see a significant shift in overall risk appetite. The silver market sold off after there was more of a rush into riskier assets, but at the end of the day it is probably going to end up being short-lived. We have the jobs number during the trading session on Thursday, so that of course will have its influence as well.
SILVER Video 02.07.20
Looking at this chart, the 50 day EMA underneath could offer some support, just as the 200 day EMA could. With that being said, it is likely that the market is going to continue to see buyers underneath, and thereby I like buying the dips as they occur. I would do so with extraordinarily little in the way of leverage, so at this point in time the market is a “buy on the dips” scenario, but you need to do so cautiously out the silver markets can be quite volatile.
With that being the case, the market is likely to see a lot of noise, but there is still quite a bit of support underneath that comes into play. Keep in mind that the US dollar will have its influence on silver as well, so pay attention to whether it is strengthening or weakening as it can come into play and cause crosscurrents.
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This article was originally posted on FX Empire
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