The silver market continues to see a lot of noisy behavior, but at the same time, this is a market that has a lot of buyers in it willing to pick up “cheap silver.” With this, the market is likely to eventually break out and go higher.
Silver initially did try to rally a bit during the trading session on Tuesday but has given back a bit of the gains to show signs of hesitation. The $31 level, of course, is likely going to continue to be an area that people pay attention to. And therefore, I think a little bit of exhaustion probably comes into the picture, but I don’t know that it’s that big of a deal. Ultimately, this is a market that may have gotten a little bit of stretch.
So, I think really at this point, we’re just working off some of the noise. The $30 level underneath is an area of significant psychological and structural importance so that is worth paying attention to. If we can break above this little bit of resistance at the $31.50 level, then the $32.25 level might get targeted. In general, this is a market that I think continues to see a lot of value hunting and therefore buy on the dip behavior. The 50 day EMA is closer to the $29.33 level and is rising.
So, with that being the case, I think that’s your short term floor. Silver has been bullish for a while, but silver is so noisy. You have to be very cautious with position sizing and therefore it does make a lot of sense that we will see you know, best treated as a market that is something that you’re bullish on, but you’re not aggressive in as you can get hurt quickly if you are not careful.
For a look at all of today’s economic events, check out our economic calendar.
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.