After the jobs report on Friday, Silver markets really picked up steam and started to bounce significantly. We have gained over 2% in a few short hours. Remember, we have been talking about the major support level below, it has now been confirmed.
Silver markets bounced rather significantly from the $15.00 level during the day on Friday as the weaker than anticipated jobs report came out. However, we were already trading around $15.17 by the time that announcement was released. This only exacerbated the move as we reached towards the 200 day EMA right around the $15.40 level. This type of bullish candle is something that should be paid attention to them, and even though the 200 day EMA will of course attract a lot of attention, these types of moves typically have follow-through.
The $15 level underneath should be thought of as the “floor” of any type of bullish move, so as long as we can stay above there we should be fine to start buying silver. I personally like buying silver on short-term pullbacks on short-term charts. I believe we will be going towards the $16 level over the longer-term, and then possibly even higher than that.
This of course will be dependent on what happens with the US dollar, but if it starts to soften a bit further due to the jobs number, and the fact that the Federal Reserve is on the sidelines, that could bode well for the Silver markets in general. Remember, the Gold markets look very strong as well, so gold will probably pull silver right along with it.
On the downside, if we broke down below the $15.00 level, I think a break of the $14.90 level would send this market reaching to much lower levels, possibly as low as $14.00 on the downside.
Please let us know what you think in the comments below
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.