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Christopher Lewis

Silver market participants continue to be a bit stagnant during the trading session on Wednesday after the initial gapped lower. That being the case, the market looks likely to see a lot of noise in this area as we are simply sitting at the 50 day EMA. Granted, the gap lower was negative but at this point it does look like we are trying to form some type of stand. The market did fill the gap, and now the question is where we go next? It’s pretty simple for me though, if we can break above the top of the candlestick for the trading session on Wednesday, then I believe silver rally significantly and towards the $19.00 level. That being said, I think it’s only a matter of time before we get that, but if we do break down from here then I think the next major support level is somewhere around $17.50 below which has turned the market to the upside the last time we hit it.

SILVER Video 27.02.20

Underneath that, then we have the 200 day EMA which is currently trading at the $17.09 level, which keeps the entire idea of an uptrend intact. One of the main things that is working against the silver market right now is the strength of the US dollar, but I think at this point it’s only a matter of time before we get more of a run towards precious metals as they are a huge safety commodity for most traders currently. The problem with silver though is the fact that it has a bit of an industrial component to it as well, so that may make it lag a bit it comes to its correlation gold.

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