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Silver markets rally for the week

By:
Christopher Lewis
Updated: Jun 9, 2018, 09:20 UTC

Silver markets rallied significantly during the week, reaching towards the $17 level before pulling back slightly. The market looks likely as if it is ready to continue going higher, and if we can break above the $17 level, things could get interesting.

Silver weekly chart, June 11, 2018

Silver markets rallied significantly during the week, closing towards the top of the candle in a sign of strength. If we can break above the top of the candle, we should continue to go to the $17.50 level. This is a market that should continue to be noisy, but the $17.50 level above is massive resistance. I think we will have a significant fight up there but given enough time I believe that silver will continue to climb, perhaps due to a falling US dollar longer-term, or perhaps even some type of geopolitical event. I believe that the $20 level above is a major level, and once we break above there we are looking at a longer-term “buy-and-hold” investment that could rocket towards the $50 level above.

I think that the $16 level is the beginning of major support extending down to the $15.50 level, and I find it very difficult to think that this market will break down below there in continue to go much lower. In the short term, I think that we continue to be range bound between the marked levels on the chart, but certainly it looks as if there is plenty of buying pressure underneath and perhaps a nice opportunity to invest in precious metals slowly, building up a larger position that you can take advantage of. If we were to break down below the $15 level, that could be catastrophic for this market, and send it down to the $12 level, although I think that is only about a 5% possibility.

SILVER Video 11.06.18

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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