Silver markets rallied on New Year’s Eve to break above the $50.50 level. However, we did run into a bit of resistance and therefore turned around of form a bit of a shooting star. This suggests that we may get a bit of a pullback, and I look at that as nice opportunity. The $15.00 level should offer support, and I think if you are patient enough you may get an opportunity to buy silver summer closer to that level. The 50 day EMA underneath there is turning higher, which of course signifies longer-term strength. I think a pullback is healthy though, because quite frankly we have gone straight up over the last several days.
SILVER Video 02.01.19
It is because of the significance of the brake above $15 that I’m not willing to short this market, and I simply look at the market as offering an opportunity if you are patient enough. The alternate scenario of course is we break above the top of the shooting star which is a very bullish sign and would be a buy signal. However, that’s the least favorite at my scenarios, so I’m waiting to see cheaper pricing to take advantage of which should be a nice run towards the $16 level based upon the $1.00 consolidation area that we had been in previously. The US dollar has softened a bit due to the reluctance of the Federal Reserve to continue its hawkish stance, so stronger Silver pricing makes sense.