Silver markets rallied a bit during the week, breaking towards the $17.00 level before pulling back a bit. That being said, we are chopping back and forth, and the uptrend line from previous trading that has now been broken is looking to offer a lot of resistance. Underneath, I see the 50 week EMA is something worth paying attention to as it is the $16.40 level. At this point, the market is likely to continue to see a lot of back and forth chop, and I think it’s probably easier to trade silver from a short-term standpoint than a longer-term one as there seems to be a lot of indecision. As an example, Friday had seen the “phase 1 deal” signed by the United States and China, and we still didn’t get much in the way of movement in the precious metals markets.
SILVER Video 16.12.19
The 50 week EMA underneath also ties in with the 61.8% Fibonacci retracement level and that of course will attract a lot of attention. At this point, the market is very likely to continue to see a lot of back and forth and therefore I think that it is probably best to simply try to trade this market from a range bound perspective on short-term charts as that’s probably where most of the profits are. That being said though, if we were to break above the highs from the previous week, clearing the uptrend line, then the market could go much higher. Alternately, if we break down below the 61.8% Fibonacci retracement level, then the market is likely to go down towards the $16.00 level or below.
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This article was originally posted on FX Empire