The silver market continues to see a lot of noise, hugging the 50-day EMA.
The $80 Level Is a Psychological Battleground at the 50-Day EMA
The silver market has been very noisy during early trading on Thursday as we are sitting just above the crucial 50-day EMA. The $80 level is a large, round, psychologically significant figure that a lot of people will be watching, as it was defended and also repudiated price multiple times in the past. There’s clearly a battle going on there. The 50-day EMA sitting there backs that up, but now we’ve seen the market initially try to rally, then fall, and then bounce again at that moving average.
Silver daily chart – Price battles at the 50-day EMA and the psychologically significant $80 level. Source: TradingView.
$90 Is the Upside Target; Tuesday’s Lows Guard $70
If we were to turn around and rally from here, then the $90 level is a potential target. If we break down below that nasty candlestick on Tuesday, then we could open up a move down to the $70 level.
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See all Silver forecastsThe World Is Focused on Crude Oil, Not Silver—and That Explains the Calm
All things being equal, this is a market that continues to be very noisy, as silver is volatile under the best of circumstances. We have recently seen a massive amount of selling pressure in this market that wiped out a lot of accounts. When you look at this, the world is focusing more on crude oil and less on silver, so it makes a certain amount of sense that we are relatively calm here.
Supply and Demand Favors Higher Prices, but Commitment Is Lacking
There are still a lot of buyers underneath as the supply-and-demand situation definitely favors higher pricing longer-term. But in the short term, we need to find enough people willing to stick their neck out and take this trade. Expect sideways action right around the 50-day EMA again during the session.