Silver markets rallied significantly during the trading session on Thursday, breaking above the 50 day EMA again, but pulling back a bit from the $16.00 level which is starting to look more and more like serious resistance. With that being the case, expect choppier back and forth behavior but I do think that the longer-term trajectory is still to the upside when it comes to silver and precious metals in general. With that being the case, if we can break above the $16.00 level it’s likely that the market will break higher and go looking towards the 200 day EMA, possibly the $17.00 level after that.
SILVER Video 10.04.20
The size of the candle is of course something to pay attention to and the closer we close to the $16 level, the more likely we are to see follow-through. If we get that follow-through, then it will be more of a grind higher. Having said that, if we pull back from here, I think that the $15.00 level will continue to offer plenty of support as it is a large, round, psychologically significant figure and of course previous resistance as well as support. With this, I anticipate that the next day or two will probably be more of a back-and-forth type of market, so keep in mind that we may bounce around between the 15 and $16 levels respectively. I expect a lot of noise, but I do think that eventually the buyers will win the day. Short-term charts should be used within the confines of these areas.
This article was originally posted on FX Empire
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