Silver markets rebounded significantly during Thursday’s trading session, again breaking above the 50-day EMA, but pulled back somewhat from the $ 16.00 level, which looks increasingly serious resistance. If this is the case, expect a more choppy back and forth behavior, but I think the longer-term development for silver and precious metals in general is still positive. In this case, if we can exceed the $ 16.00 level, it is likely that the market will break higher and look at the 200-day EMA, possibly the $ 17.00 level thereafter.
SILVER video 04/10/20
The size of the candle is of course something to watch out for. The closer we get to the $ 16 level, the more likely we are to see a sequel. If we get this follow-through, it will be a grind higher. However, if we pull out of here, I think the $ 15.00 level will continue to offer a lot of support because it is a large, round, psychologically significant number and of course previous resistance and support. With this in mind, I expect the next day or two to be more of a back and forth market. So keep in mind that we can fluctuate between $ 15 and $ 16. I expect a lot of noise, but I think buyers will eventually win the day. Short term diagrams should be used within the limits of these areas.
This article was originally published on FX Empire