Buy Gold MCX 50150—50120 Target 50235–50320 SL PAID. Silver markets have rallied a bit during the trading session on Wednesday, as we continue to look at the $26 level underneath as a bit of support.
I also believe that the $25 level underneath offer support, not only due to the fact that it has proven itself to be supportive recently, but at the end of the day it is a large, round, psychologically significant figure and of course we have the 50 day EMA crossing above there and the next few days. That being said, we also face a lot of resistance just above near the $27 level, $28 level, and most certainly at the $30 level.
Ultimately, short-term pullback should end up being buying opportunities as it looks like stimulus is going to continue to work against the value of the US dollar. Beyond that, stimulus also should in theory drive up demand for silver from an industrial use standpoint, so that being said I think that given enough time we will continue to go much higher.
All things been equal though, I think that dips will offer value the people are more than willing to take advantage of. As we go into the new year, a lot of what happens next could be determined in Georgia, as if the Democrats end up taking both seats, that in theory could send expectations of stimulus much higher, thereby working against the value of the US dollar much more significantly.
Because of this, it looks as if this is a market that you should be building a positioning, and not jumping in with both feet right away. By building a position over time, you can ride what looks to be a very likely break out to the upside next year.