Silver markets pulled back just a bit during the trading session on Monday to kick off the week, as we continue to hover around the $18.00 level. The large, round, psychologically significant figure of course will attract a lot of attention, as it has shown signs of support. Ultimately, if we pull down below there, I see the 50 day EMA underneath offering quite a bit of support. At this point, the silver market will continue to move to risk aversion or risk appetite, which is a fluid situation.
SILVER Video 14.01.20
Overall, we have shown quite a bit of resistance above, so I think at this point what we are going to do is see a lot of choppiness. A bit of consolidation might be the best way to go going forward, but if we break down below the 50 day EMA then I think we go looking towards the $17.00 level. With that being the case, I think that you will need to be very cautious about jumping “all in” when it comes to this market, but I do think that there are enough tensions out there that we will eventually see a bit of a boost for precious metals in general, which of course will have an influence on silver itself. I am bullish longer term but recognize that a pullback may be necessary in the short term, as tensions have calm down between the United States and Iran, and of course the Americans and the Chinese. Given a bit of time though, it will all come back and we will continue to see safe haven buying.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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