The silver market continues to see a lot of buying overall, as the trend continues to see a lot of pressures to the upside. At this point in time, the market looks as if it is trying to find its way higher yet again.
The silver market found itself a bit noisy during the early hours on Monday as we pulled back towards the $30 level again, only to turn around and show signs of life. At this juncture, the market is hanging around between the 200 day EMA below and the 50 day EMA above. With that being said, I think we are in that sweet spot where you attract a lot of attention. The question of course is which direction do we go? In noisy patterns like this it’s best to pay close attention to the longer-term trend, as typically consolidation will lead to some type of continuation.
Well, as traders, we have to come up with something and I think a move above the $31.50 level gives me much more confidence in the silver market as we will have just formed a so-called W pattern. If we turn around and break down below the lows of the last couple of days and then the 200-day EMA, you could see silver fall apart.
Ultimately, we are in an uptrend, so understand that you are still looking for cheap silver to take advantage of as the market has been so decidedly bullish for the entire year really. If we do break out to the upside, I suspect we will eventually try to get to the $35 level above. If we can get above that level, then were off to the races as the market could very well see continued momentum building in this market.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.