Silver Continues to Show Bullish Pressure - 19 May 2015

Christopher Lewis

Looking at the silver markets in the spot index, you can see that we have broken above the $17.50 level during the session on Monday, and out of the previous large consolidation area. At this point in time, it appears that the market is probably aiming for the $18.50 level, an area that I have circled on the chart. I believe that is a resistive and key level, but if we can get above there I think that silver drives all the way to the $20.00 level. That’s a pretty big move in silver, and as a result it could be very profitable.

Nonetheless, I feel that this market has broken out of something rather restrictive and important, so I believe at the very least we should be aiming for the $18.50 level. On top of that, the US dollar continues to struggle and it appears that the precious metals markets are reacting appropriately.

Buying dips and hanging on

I believe that buying dips on short-term pullbacks will be the way to go going forward in the silver market, but I also believe that if you can build up some type of core position in the CFD markets, you could very well profit from this move quite handsomely. I believe that the precious metals, much like the Euro and perhaps the WTI Crude Oil market have all put in a bottom. This is mainly due to the US dollar and the fact that the Federal Reserve is not going to raise interest rates anytime soon, and the market may had been a little bit overaggressive in pricing that move in.

Ultimately, I think that silver not only breaks out to the $18.50 level, but eventually reaches the $20 level. I think that silver is certainly one of the more interesting trades out there, and if you have the ability to play both the binary options market and the CFD market, I would highly encourage you to do so. I have no interest in selling this market as long as we can stay above the $17.00 level.

Silver USD 51915

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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