Silver markets rallied a bit during the trading session on Monday, reaching towards the $16.50 level yet again. This is an area that has caused a bit of resistance, which of course isn’t a huge surprise considering that the Silver markets most certainly pay attention to $0.50 increments. Beyond that, we also have been a bit parabolic so I think we needed to pull back a bit longer, or perhaps even consolidate just above the $16.00 level to attract fresh money. Remember, there are large amounts of traders out there who look at the markets through the prism of value, so they are a bit cautious of “paying up” for any type of commodity or asset.
SILVER Video 23.07.19
If we do break down below the $16.00 level, it’s very likely that the market will then find support closer to the $15.50 level underneath. I do believe that the buyers are going to come back sooner or later, at this point it’s only a matter of finding enough support to be comfortable getting involved in. I do like the idea of buying value as it occurs, as I do believe that central banks around the world looking to cut rates will continue to lift precious metals overall. After all, “hard money” becomes much more attractive in a scenario that promises weaker currencies more than anything else. With that, I do think that this is a “one-way trade”, but we also need a bit of a pullback to attract fresh money into the market. I am bullish, and therefore have no interest in trying to fade this rally.
Please let us know what you think in the comments below