Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

Silver markets have fallen apart to the downside, overreacting as per usual. As the candlestick is rather brutal looking, the reality is that the market is still bullish. We had a parabolic move to the upside so a resumption of that trend would be asking quite a bit of effort to continue. I think at this point it is likely that we will see a bit of volatility, but I certainly think that there are plenty of buyers underneath. After all, the market went straight up in the air.

SILVER Video 28.09.20

One of the biggest killers a silver is the strength of the US dollar that we have seen, and if that continues to be the case silver will continue to crater lower. Longer-term though, I do believe that it is a market that you want to own, mainly because central banks around the world continue to loosen monetary policy and of course central banks are also buying precious metals. While they are not necessarily step in to buy silver, it does tend to react based upon gold but with more volatility.

I believe that this market could drop as low as $20 over the next couple of weeks, but on shorter-term charts, mainly the daily timeframe, it looks like we might get a short-term bounce. Longer-term, I am more than willing to buy-and-hold silver and recognize that eventually we will explode to the upside yet again because all of the reasons that have driven silver higher are still out there. This was simple overbought conditions getting pushed over by the US dollar strengthening. Markets do not typically go straight up in the air and not pull back drastically, so this should not be a huge surprise that we have seen this.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.