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Silver falls during the week only to find buyers

By:
Christopher Lewis
Updated: May 5, 2018, 06:54 UTC

The Silver markets fell during most of the week, only to find massive support underneath and turned around to form a very bullish looking hammer. This of course is a good sign, and it looks like the buyers are continuing to pick up dips as they occur.

Silver weekly chart, May 07, 2018

The Silver markets fell initially during the week, reaching down to the $16 level, an area where the buyers return. By forming the hammer that we have, this is a good sign, and it shows that there are still plenty of buyers underneath willing to pick up silver. I think that eventually, the buyers may when the day, but it’s obvious that we are still very much in consolidation. The $17 level above is resistance, but I think we break above there and go to the $17.50 level. Ultimately, I think that every time we pull back there will be plenty of buyers underneath trying to take advantage of value.

If we did breakdown below the $16 level, the market more than likely has plenty of support at the $15.50 level, an area that should be very solid for the markets, as it has held for several years. I think that every time we dip, it’s time to start buying silver, but I prefer to do with very little in the way of leverage. I’ve been buying physical silver, as I believe longer-term the should be a nice moved to the upside just waiting to happen. Alternately though, if you are a futures trader, perhaps you can buy dips for short-term burst to the upside. A break above the top of the candle for the week of course is a sign of bullish pressure, just as any bounce that we get after short-term selling off would be.

SILVER Video 07.05.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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