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Christopher Lewis
Silver

Silver markets have pulled back just a bit on Friday, but this makes a bit of sense considering that we are looking at a scenario where stimulus is all but assured, and that should drive down the value of the US dollar. Furthermore, it could also have an influence on what happens with demand for precious metals in the light, so at this point in time I think we are probably looking at a “buy on the dips” type of market, which is typically the case with a falling US dollar.

SILVER Video 21.12.20

Just above, I see the $28 level as offering a significant amount of resistance, just as I see the $29 level and the $30 level doing the same. I do believe that those are targets given enough time though, so I have no interest in shorting this market, although you could make an argument to fall down towards the $25 level in order to fill the gap. That is a large, round, psychologically significant figure as well, so it all ties in together quite nicely. Underneath all of that, you have the 200 day EMA sitting at the $22 level, which of course could come into play as well.

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It is not until we break down below that level that I would consider shorting silver, and quite frankly something truly ugly would have had to happen in order to approach that level. The last several months have been about building a base for continued uptrend, and now it looks like we are ready to start making that move again. If we can break above the $30 level, this market will skyrocket.

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

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