Silver markets pulled back after initially trying to rally during the day on Friday, slicing through an uptrend line, and reaching down towards the 200 day EMA. Because of this, it looks as if the market is going to continue to struggle, but the 200 day EMA could cause a slight bounce. Regardless, the last couple of highs have essentially been equal, and that means that it’s very likely that we have seen the top for silver, at least in the short term.
SILVER Video 04.03.19
At this point, the $15.00 level underneath will probably be a target initially, as it was previous resistance. I like the idea of picking up value though, so in the short term while I might be bearish, I think that there are buyers underneath waiting to pick up silver “on the cheap.” The $15.00 level could in fact be a place where a lot of buyers come back in and pick things up. If not, then the $14.50 level should be targeted as a potential buying opportunity.
To the upside, I think that the $16.00 level will be very difficult to slice through, but eventually I think it happens. That being said, we need to build up enough momentum to finally break out to the upside and go much higher over the longer-term. The Federal Reserve becoming a bit more dovish certainly should help the idea of owning precious metals, and therefore although it looks like we are going to go a bit lower, longer-term I still like this market at lower levels as it offers value.
Please let us know what you think in the comments below