Silver markets rallied a bit to start the week, reaching towards the $15.55 level. This is a market that has been trying to form a bit of a base as the longer-term value was formed below previously at the $15 level. Going back several years, $15 has always caused a lot of noise.
Silver markets rallied a bit during the trading session on Monday, to kick off the week. I think it we can finally break above the $15.65 level, it’s likely that the market will then go looking towards the $15.88 level. There is a lot of noise in this market, but at this point I do believe that silver is trying to form a bit of a base. Between the $15.50 level in the $15 level, there is a ton of demand. That doesn’t mean that we are going to take off to the upside immediately, but I do think that pullbacks offer value that traders will be willing to take advantage of.
I believe that the market will continue to be very loud, but that’s nothing new for Silver traders. Over the longer-term, I believe that the market will probably go looking towards those highs at the $15.88 level, I think that pullbacks will be supported at various levels, but most importantly the $15.35 level which has been tested a couple of times now. If we were to break down below that level, then I think we probably go closer to the $15 level where I would expect a ton of buyers to jump in. If we were to break down below the $15, that would be a major event longer-term for this market, something that I don’t see happening anytime soon. Pay attention to the US dollar, if it starts to fall again that should help silver.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.