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Christopher Lewis

Silver markets initially tried to rally during the trading session on Thursday but gave back the gains to turn around and show signs of weakness. Ultimately, I think that the market is probably trying to figure out what to do about the precious metals aspect, and then of course the industrial aspect which is just as important. Because of this, I think it is going to be difficult to glean where to go with silver, as the industrial demand is going to be a huge question, as the growth of global economies is going to be very uneven.

SILVER Video 19.06.20

On the other hand, the precious metals aspect could be picking up a bit of a bid due to the fact that there is so much fear, which of course silver is looked at as not only an industrial metal, but it precious metal as well. Looking at this chart, it is obvious to me that the $18 level is crucial, just as the $18.50 level is.

Ultimately, I have no interest in trying to short silver because I see a lot of support underneath at the $17 level, just as I see a lot of support at the $16.50 level. With all things being equal, I think that if we break down from here it will end up being a nice buying opportunity that we can take advantage of. Keep your position size relatively small though, as silver tends to be very volatile and of course can cause massive losses if you are on the wrong side of the trade.

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

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