Silver markets have rallied a bit on Tuesday, reaching the highs from the Monday session rather quickly. It looks as if it is trying to grind towards $19.
Silver markets have rallied slightly during the trading session on Tuesday to reach the top of the Monday candle. This point, the market looks very susceptible to short-term pullbacks, but this pullback should continue to offer support.
The most obvious place that you would expect to see buyers reenter the market is somewhere near the $18 level, but even below there I would be looking for buyers at $17.50 and of course the 50 day EMA which sits at $17.23.
SILVER Video 01.07.20
After that, there is a “area of support” between the 50 day EMA and the 200 day EMA which features the $17 level. In other words, this is a market that has a lot of support underneath it and therefore I think we will eventually get that breakout that so many people are looking for.
To the upside, I see the $18.50 level as slightly resistive, followed by the $19 level. If we can break above the $19 level then it is a major breakout and we will almost certainly hit the $20 level rather quickly. Beyond that, we could see a repeat of what the market did during the Great Financial Crisis, screaming all the way to the $50 level in short order.
I do not know if it will be as parabolic this time, but let us be honest here: there are plenty of things out there that could spook the markets into precious metals at this point. Beyond that, the Federal Reserve is liquefying the markets and pumping US dollars into it as fast as they possibly can, which could help silver as well.