Silver markets initially fell during the week but have found enough support underneath the turn around to form a bit of a hammer. The weekly candle stick is encouraging, and I think it’s only a matter of time before we get the break out. This is especially true considering all of the risk potential out there.
Silver markets initially fell during the week, reaching down towards the $14.25 level before turning around and forming a massive hammer. At this point, I think it’s obvious that the $15 level above is resistance, but I think at this point we are in fact going to try to break out above there in continue to go higher. At that point, I would anticipate a move towards the $15.50 level, and then the $16 level. Longer-term, we could even be talking about a move to the $17 level beyond that. I like silver longer-term beyond there and have been buying physical silver for some time. However, buying a leveraged instrument is an entirely different argument.
I think that the Silver markets are ready to continue going higher, especially as there are so many risk events out there just waiting to flareup. Global growth is a concern, and even though the US dollar has been strengthening, it has been strengthening due to a flight to safety, and therefore hasn’t been as big of a drag on precious metals as most people would expect. Ultimately, money is looking for a place to hide, and precious metals do serve that function at times. I believe there is a significant amount of support just below at the $14.25 level that extends down to the $14 level after that. If we were to break down below there, that would be a very negative sign, and could open the door to $12.
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.