Silver markets initially fell during the trading session on Thursday as the world awaited the jobs figure, and as a result it is likely that we would continue to see a lot of volatility and perhaps a bit of profit-taking. Underneath, I see the $18 level as offering support, and it has in fact shown itself to be supportive and crucial for the market during the day on Thursday. The $18 level of course is a significant round figure and will attract a lot of attention. If we break down below the $18 level, then it is likely that the market goes looking towards the 50 day EMA.
SILVER Video 03.07.20
Underneath there, then we have the $17 level which of course is a large, round, psychologically significant figure as well and is supported by the 200 day EMA as well. Ultimately, I think that the market is in an uptrend and will continue to be so due to the central banks around the world pumping the markets full of liquidity, and therefore people will continue to look for precious metals to fight off currency devaluation. To the upside, I see the $19 level as an area that needs to be challenged multiple times in order to be broken through, but eventually we will have that happen and the market will go looking towards the $20 level. I do not have a scenario in which a willing to sell quite yet, so at this point on simply looking to “by the dips” as they occur. Ultimately, I do think that we reach $20.
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This article was originally posted on FX Empire
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