Silver markets initially pulled back again during the trading session on Friday, but then pulled back towards the $17.50 level, and as a result we have turned around to form a bit of a hammer. The hammer of course is a bullish sign, and as a result it is likely that breaking above the $18 level could open up a move towards the $18.50, and then eventually $19. Silver has been very bullish for quite some time, so it is difficult to imagine a scenario where we would be suddenly short of this market, even if we do break down below the $17.50 level.
SILVER Video 29.06.20
Underneath there, the $17 level would be massive support, just as the 50 day EMA has found itself right around there, so it is likely that we would see plenty of support as well. I have no interest in shorting silver because central banks around the world continue to see the need for quantitative easing, which will continue to weigh upon fiat currencies in general.
At this point in time, the market is probably going to be dragged higher as well due to the gold markets breaking out, and silver being cheaper for spot traders to get involved with. I have no interest in shorting this market anytime soon, and quite frankly I do not even have a scenario in which I would be shorting this market. If we do break down, the 200 day EMA will more than likely continue to determine the uptrend.
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This article was originally posted on FX Empire
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