Silver Markets Weekly Technical Analysis
The silver market has been rather noisy during the course of the week, as the market had originally broken above the $28.50 level only to turn around and show signs of negativity. By doing so, the market now looks as if it is going to be a situation where we are trying to determine whether the uptrend can stay intact. From a longer term standpoint, it’s the $26.50 level that I feel and believe is the major support level that has to hold. We are crashing towards it, but we’ve done this before. So, it’ll be interesting to see how this plays out. Keep in mind that silver is not gold, it’s an industrial metal as well as a precious metal.
So, you will have to recognize that it behaves a little bit differently than gold. But at the end of the day, if the US dollar starts to sell off and it looks like it’s going to, we could see silver perhaps get a little bit of a bid. I just don’t think you get it up here I think you need to look at this through the prism of a market that is pulling back from an extreme high.
Again, I think it’s all settled right around the $26.50 level. If we can hold that region as support, this could be a big sign of strength, so it will be interesting if we get down to that level over the next few weeks, which looks very possible to say the least.
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