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Christopher Lewis
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Silver

Silver markets initially fell during trading on Wednesday but found enough support near the $17.50 level to turn around and rally again. Ultimately, this is a market that has plenty of support below, extending all the way down to the $17.00 level. At that point, we also have the 50 day EMA and of course the recent bounce that should show a significant amount of support. The 200 day EMA is just below there, so all things being equal I think that the $17 level will continue to be important, and I think the markets will reflect that.

SILVER Video 25.06.20

With all of that being said, I believe that the silver markets will eventually break out to the upside and therefore when we pull back, I believe that a lot of value hunters will come into the marketplace trying to pick up “cheap silver.” If we do break down below the 200 day EMA, then the massive floor at the $16 level comes into play, extending all the way down to the $15 level. At this point, I have no interest whatsoever in trying to short either silver or gold although I am much more bullish of gold and silver.

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If and when gold breaks out above the $1800 level, the market will probably start to focus more on silver and that could turbocharge rallies at this point. With that being said, I like the idea of taking advantage of dips going forward as it should offer plenty of opportunities and a potential move towards the $19.00 level above. I do not think it is going to be easy, but eventually we will probably get there.

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

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