Silver markets have broken down a bit during the trading session on Wednesday, reaching down towards the $23.30 level before bouncing again. Quite frankly, this is a market that will probably continue to be all over the place due to the fact that stimulus will more than likely be less strong than once thought. If that is going to be the case, then the US dollar will retain some of its value and it is likely that we would see silver get hit just a bit.
SILVER Video 05.11.20
Having said that, there is still the safety part of silver, albeit just a small part of the trade. It would not surprise me at all to see silver continue to drift a little bit lower from here, perhaps down towards the 200 day EMA or even the $20 level. However, if we can break above the $25.50 level, then it is likely that the market goes much higher, perhaps reaching towards the $27 level after that. That was a scene of major supply, and I think it is worth noting that traders will continue to look at it through the lens of importance. That would be my first target if we break out to the upside, but I just do not see that happening in the short term.
Quite frankly, the markets are confused and locked up, and with the elections drawing to an end, now the question is whether or not stimulus is going to be big enough to get everybody excited. Unfortunately, I do not know that too much has changed. Longer-term, I like the idea of buying dips.
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