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Christopher Lewis

Silver markets have rallied during the trading session on Tuesday, reaching towards the $20 level. The $20 level of course has offered a significant amount of resistance in the past, so it does make sense that we could pull back even further. Having said that though, the market has a ton of support underneath as well. The support starts at the $26 level, so this pullback could be thought of as a buying opportunity.

SILVER Video 16.09.20

During the trading session on Tuesday, the US dollar strengthened quite a bit so that could work against silver in the short term. At this point time, the market is moving back and forth against the action of the US dollar, and therefore it is likely that we will see traders pay the most attention to the dollar than anything else. After all, even though the concern out there could have people looking for some type of safety in the form of precious metals, typically gold performs better in that scenario. With the US dollar strengthening, that means that more people are apt to go looking towards safety and the Treasury markets than metals. This is not to say that the market cannot go higher, and quite frankly I think it will.

The 50 day EMA is currently sitting at the $25 level, and therefore I think it makes quite a bit of sense that the area will offer support from a structural and psychological standpoint. Even though we have formed a very ugly looking candle during the trading session on Tuesday, the reality is that we have gone back and forth for some time, and the candlestick for the trading session on Tuesday certainly suggest that we may do more of the same.

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

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