FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
116,668,383Confirmed
2,592,047Deaths
92,280,668Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Silver

Looking at the candlestick, you can see that it is somewhat neutral at the moment, and therefore we may get a little bit of a pullback or at the very least some sideways trading in the silver market as we had perhaps gotten ahead of ourselves. The $25 level underneath is massive support that extends down to the $24 level, so I think it is only a matter of time before the buyers return. However, if we were to break down below the $24 level, it is likely that we could go looking towards the $20 level underneath. That of course is a major, round, psychologically significant figure, as it took so much to break above there.

SILVER Video 24.08.20

When you look at the longer-term chart, a return to the $20 level is not necessarily unrealistic, because after all it has not been retested for support after the massive parabolic breakout. I do not necessarily think that is going to happen, but it is not out of the realm of possibility. That would obviously need to see a stronger US dollar, so it is worth watching the FX markets at the same time. With that being said, it is worth noting that a lot of the currencies around the world look like they are ready to give up some of the gains against the greenback. With that in mind, I think it is only a matter of time before correlation between the FX markets and the silver market, but I still believe that there is an argument to be made for precious metals, no matter the currency you are measuring it against.

Advertisement
Know where Silver is headed? Take advantage now with 

75% of retail CFD investors lose money

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

Advertisement
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