Christopher Lewis
Add to Bookmarks

Silver markets broke down significantly during the trading session on Wednesday, slicing through the $24 level. Ultimately, the market looks as if it is ready to go much lower, perhaps reaching towards the $22 level underneath, perhaps even the 200 day EMA after that. Ultimately, this is a market that is still in an uptrend given enough time, and ultimately if you can get some type of supportive candlestick, it gives you an opportunity to pick up silver “on the cheap.”

SILVER Video 29.10.20

Just below the 200 day EMA we have the 50% Fibonacci retracement level, which could offer a bit of support, followed by the $20 level. Looking at this chart, the possibility of a pullback to any others levels makes quite a bit of sense, especially as the US dollar is starting to strengthen. If that is going to be the case, then the market is likely to continue to drift lower until we find real demand. I do think that eventually the longer-term trend takes over again, and quite frankly it is very likely that we are going to continue to see buyers looking for opportunities to go long as central banks around the world continue to see the need to flood the markets with liquidity. If that is going to be the case, then precious metals and other hard assets should do fairly well. At this point, I recognize we could drop from here, but I do not have any serious desire to short the market.

Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker