Silver markets rallied a bit during the trading session on Wednesday, bouncing from the 200 day EMA. The 200 day EMA of course is a crucial technical indicator and attracts a lot of attention. The fact that we have bounced from there does save the possibility of an uptrend holding, but at this point it’s very unlikely that is going to be an easy route higher if we do in fact bound. After all, we have the 50 day EMA and the psychologically important $17.00 level above. That being said, remember that silver is driven by risk appetite more than anything else.
SILVER Video 12.12.19
Silver markets have shown a bit of strength during the day but that being said if we were to turn around a break down below the 200 day EMA it would be the last gasp of an uptrend. Ultimately, if we were to break above the 50 day EMA then it’s likely that silver would continue to go higher, perhaps reaching towards the previous uptrend line as it should not be resistance. Break above there then allows the market to go much higher. At that point I would anticipate a move towards $20.00 above.
In the meantime, it’s probably much more likely that we simply bounce around and flounder between the major moving averages, as the markets ugly doesn’t know what to do with itself at this point. Brexit, the US/China trade situation, and concerns about global growth will continue to offer a lot of noise in this market so therefore I would be cautious about position sizing at this point.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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