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Christopher Lewis

Silver markets pulled back a bit during the trading session on Friday, as we have perhaps had to give back a little bit of the gains enjoyed over the last couple of days. After all, it had been impulsive again and quite frankly we cannot afford to have more “FOMO trading.” That tends to bring in a lot of resistance to the upside, and very unstable markets. Those unstable markets can lead to massive breakdowns and therefore the slower we grind to the upside the better off we are going to be.

SILVER Video 17.08.20

Looking at this chart, I do think that we will go looking towards the $30 level eventually, but it is going to take some time to get there. If we can break above the $30 level, then it is likely that we will start looking at the possibility of $50 silver again, as it seems to be a bit of a magnet for price on these impulsive breakouts. I have no interest in shorting silver, at least not anytime soon.

I do believe that there will remain significant support in the vicinity of $25, so therefore a pullback to that area will probably have me buying again. Short-term dips in general are buying opportunities but we need to see a more sustainable rally than the one that we had previously. As all the “weak hands” have been shaken out, it makes sense that there will be a lot less in the way of momentum chasing this time, at least that is the hope.

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

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