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Christopher Lewis
Silver daily chart, November 21, 2019

Silver markets went back and forth during the trading session on Wednesday, just above the $17.00 level. By doing so, it shows that the market is continuing to find a lot of noise out there to trade around. Ultimately, this is a market that has plenty of support underneath, both in the form of the uptrend line that I have drawn on the chart, but also in the form of the 200 day EMA that sits just below there. Markets have been going higher over the longer term, but the last couple of months have been a bit rough for precious metals. Perhaps this is due to the fact that the Federal Reserve is now on the sidelines, and not necessarily expected to cut interest rates.

SILVER Video 21.11.19

That being said, players are willing to jump in on these dips based upon recent headlines. The simplest analysis that I can do is that we are above the trend line and until we break down below it, the market is still technically in an uptrend. It should also be noted that the 61.8% Fibonacci retracement level is just below the 200 day EMA, so there are several technical reasons to think that we could hold. Beyond that, headlines continue to rock the markets occasionally, driving money into the metals. One would have to think it’s only a matter of time before something goes wrong in the US/China situation that causes a bounce. However, if we do break down below the $16.35 level, then we will have wiped out all of the supportive technical indicators and start reaching towards the $16.00 level, possibly even the $15.00 level.

Please let us know what you think in the comments below

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