- Silver gapped higher to kick off the trading session here on Friday but then fell pretty hard to fill the gap.
- The gap being filled then brought in buyers and we find ourselves trying to launch into the stratosphere at the moment.
- Looking at the previous bullish flag, we had a measured move for the silver market to go looking at the $46, maybe $46.25 level.
At this point in time, we're almost there. I don't see anything to keep us from getting there. And I do think that anytime silver rallies, you have to assume it's a buying opportunity due to the fact that the overall momentum for quite some time has been very strong. And I just don't see that changing anytime in the near future with the idea that any dip going forward as shown during the early part of the session here on Friday as a buying opportunity.
Where we end up, I don't know yet, but like I said, the $46 region is basically where we find ourselves reaching the measured move, which typically the measured move is fulfilled and we keep going.
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Plenty of Support Below Here
But with this being the case, I would look at this through the prism of a market that quite frankly is one that should have support at $44 as it was the last launch point. And then again at $42, which was the top of the bullish flag. I would anticipate that there may be an attempt to get to $50, but $50 is still something like 11 % or so from here. So, it doesn't mean we're going to get there tomorrow. I have no interest in shorting silver, but if we were to break down below the $40 level, then you have to look at it in a different light, perhaps start to ask questions.
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