Silver markets have rallied yet again during the trading session on Thursday, as we continue to see a lot of bullish pressure in precious metals and commodities in general. Quite frankly, with the US dollar dropping the way it has, it makes quite a bit of sense that we will continue to see both silver and gold rallied drastically, but by all metrics at this point we are overbought. Buying silver up here would be very dangerous to say the least. With that in mind, I like the idea of some type of pullback coming into the picture in order to take advantage of. There are several support levels underneath that I would be paying attention to, with the first one being the $26 level.
SILVER Video 07.08.20
After that, I like the idea of $24 offering another buying opportunity because it is not only a large, round, psychologically significant figure but we also have the 20 day EMA approaching that level as well as previous price action in that area suggesting a lot of order flow. With that being the case, I think you need to sit on the sidelines and wait for a dip to take advantage of as we clearly have gotten far ahead of ourselves at this point. As long as the Federal Reserve continues to flood the market with greenbacks, you cannot short this market although a sharp correction certainly would not be a huge surprise at this point in time. Keep in mind that Friday is Non-Farm Payroll Friday, so that of course could cause volatility as well.
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This article was originally posted on FX Empire
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