With the US dollar strengthening the way it has over the last several weeks, it makes sense that Silver prices are a bit depressed. We are currently dancing around the $16.25 level, an area that has been important more than once, and I think that there is even more support underneath at the $16 level. Because of this, I am a buyer, but I think that you need to be very patient and understand that the markets will be a dangerous place to be if you are highly levered.
If we break down from here, I believe that the $16 level is even more crucial and more importantly, supportive. I believe that the market will continue to be very difficult, but I think that if you are a longer-term investor, buying silver at these depressed prices makes a lot of sense. I believe that longer-term we will go looking towards the $20 level, but I think that the markets will be very noisy to say the least, and therefore you need to keep the leverage down. I would not be a seller down at this lower level though, because quite frankly we don’t have as far to go.
On the chart, you can see that the 50 SMA has been important more than once, so use it as a guide stick for where I trade next. I think that we can pick up significant momentum if we can break above the $16.33 level, and more importantly the $16.50 level. However, I think that short-term traders will continue to be attracted to this market because it does move in what I refer to as “micro-movements”, as it goes back and forth a few cents.
SILVER Video 22.06.18
This article was originally posted on FX Empire
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