FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks

Silver markets initially tried to break above the $28 level, an area that has been important more than once. As we pulled back from there, it is likely that a lot of value hunters came back into the market, especially near the $26.75 level which was a minor resistance barrier previously. Because of this and so-called “market memory”, it is perfectly normal to see that the previous minor resistance level is now a minor support level. Furthermore, the uptrend line underneath is something that should be paid attention to as well, just as the $28 level is resistance.

SILVER Video 17.05.21

If we were to get a daily close above the $20 level, then I fully anticipate that the longer-term trend will allow this market to go looking towards the $30 level above. The $30 level is a large, round, psychologically significant figure. If we break above the $30 level, then it is likely that the market could go looking towards the $50 level. That is a move that has happened a couple of times in the past, so that being said I think we are looking at the overall trend continuing, and therefore I think what we are looking at here is a continued “buy on the dips” type of situation for the short term, but longer-term I think that we will eventually see the breakout base not only upon the US dollar falling, but the fact that the green energy initiative that the United States is embarking on demand more silver which of course already has a significant problem with tightening supply to begin with.

Advertisement
Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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