Silver/USD Daily Outlook- July 21, 2014

By DailyForex | Updated July 30, 2014 AAA

By: DailyForex.com

The silver markets fell during the session on Friday, but remain above the supportive $20.60 level that has kept the market somewhat afloat after having a fairly impulsive move a few weeks ago. When we broke above the $20.00 level, that was in fact a decent break out and it sends the market to higher levels as it shows a significant amount of buying momentum. However, that’s not to say that we all have problems above.

The $22.00 level will be resistive, and as a result I feel that this market will struggle to get above there. Nonetheless, I do think it happens given enough time, as the resistance barrier will ultimately be overcome simply based upon the momentum that I see in the marketplace.

The silver markets were oversold, that’s about to change.

The silver markets were drastically oversold recently, and I feel that we are about to change that mistake. After all, recent comments by the Federal Reserve chairwoman Janet Yellen suggesting that the economy will still need to be supported, even after we get out of recession. This of course should be a bit destructive for the US dollar and its value, and it shows that there will continue to be easy money policies coming out of Washington DC. On top of that though, it appears that the European Central Bank is set to have easy monetary policies put in motion, and as a result traders will look to hard assets in order to retain their wealth.

With that being the case, I believe that the market will more than likely continue higher, and pullbacks will be opportunities to buy silver based upon “value.” I think that ultimately the silver markets will go to the $25.00 level, and then possibly much higher than that based upon longer-term chart. With that, I think that supportive candles below will be triggers for the buyers to come back into the marketplace and continue to push silver higher. Ultimately, options might be the way to play this market as of volatility could continue, but there is also the possibility of buying physical several which of course helps dampen some of the leverage that the futures market can bring.

Silver 72114

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