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Christopher Lewis
Silver daily chart, August 07, 2019

Silver markets gapped a little bit higher during the trading session on Tuesday, but then turned around to fill that gap before rallying again. Ultimately, the market is bullish in general, due to the fact that there is so much in the way of uncertainty out there, and it gives us more or less a reason to start buying things to protect wealth, which of course precious metals fits quite nicely.

SILVER Video 07.08.19

Looking at this chart, you can see that there is a lot of resistance above at the $16.60 level, as we have pulled back from there. We have seen that area tested several times, but if we can break above that level, we could go looking towards the $17.00 level after that. There is the possibility of short-term pullbacks that offer support at the $16.00 level. Ultimately, the 50 day EMA is also rallying a bit during the trading session, so I think it’s likely that there is plenty of support underneath as well.

There are multiple central banks around the world looking likely to cut rates, that could of course drive money into precious metals. New buyers tend to come back into this market every time we pull back, so until this changes, I have no interest in trying to fight that rally. I also recognize that the $17.00 level above is massive resistance, an area that will attract a lot of attention not only due to previous selling pressure, but also the fact that it is a large, round, psychologically significant figure. I think we eventually break above there, but overall we will get the occasional pullback so I think it remains a short-term trader environment.

Please let us know what you think in the comments below

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