Silver futures will be raised between 19 and 20 dollars an ounce
Silver markets have rebounded significantly during Friday’s trading session, breaking above $18 an ounce. An important aspect of silver is that, besides jewelry and investment, it also has industrial demand. Unlike gold, silver is purely monetary in consumption. It causes white metal consumption to rise due to industrial demand as a result of recessions. Over the last five years, the industrial use of silver accounted for more than half of its annual market. Will there be enough industrial demand to raise the price of silver?
Christopher Lewis, an analyst, believes that $19 is going to be challenging to beat currently. He expects a lot of resistance at this quota.
If silver prices broke above the $19 level, it would be a massive bullish signal. At that level, $20 could then be reached.
However, the market looks set to attract many buyers in the dips, and that’s undoubtedly the best way to look at it. The dollar has taken a slight defeat against the euro. The latter tends to move with this market as well, so traders can keep that in mind.
The market is preparing a golden cross shape
Conversely, if silver breaks below the $18 level, the market is expected to drop to $17.25. This level offered quite a bit of support previously. Lewis stated that the market is preparing a golden cross shape. This will happen when the 50-day EMA Exponential Moving Average begins to break above the 200-day EMA. That, of course, is something that gets many long-term traders excited.
The reality, however, is that the market is likely to pull back significantly from the area silver currently is holding. The $19 level offered much resistance in the past.
If a pullback below $17.20 were to be reached, the US analyst anticipates that the market would likely move to gain momentum again.
It would take some time for silver to reach $20
However, if silver has a break above $19, it could certainly be looking towards a possible $20. It is an important psychological tipping point that, of course, would attract a lot of attention.
Cristopher Lewis concludes that it will take some work to get to that level. So, he is not expecting it to happen shortly. The best way to trade in the silver market is to look for value and then take advantage of it at lower levels.
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