Silver markets continue to look bullish as the market initially pulled back to the $18.25 level before finding support and then turning around completely. Because of this, the market is likely to see buyers on dips going forward, and the fact that the gold markets are trying to break out does bode well for silver. After all, silver does tend to follow along but at the end of the day the market is likely to continue seeing a lot of volatility, with the $19 level above being a significant barrier.
SILVER Video 08.07.20
Looking at the chart, you can see that we initially see a significant amount of support at the $18 level, and then the 50 day EMA, followed by the $17 level. All things being equal, the market is likely to see plenty of buyers underneath that gives us an opportunity to find a bit of value on dips, as gold has broken to a fresh, new high and it will drag silver right along with the given enough time.
Ultimately, I like the idea of picking up value as it occurs, and therefore I am more than willing to add to positions on dips because I do believe that eventually the silver market takes out due to the precious metals trade. That being said, one of the things that silver does have working against it is the fact that it is also considered to be an industrial metal, so that is causing a little bit of a lag in comparison to gold.
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This article was originally posted on FX Empire
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