Silver Technical Analysis
The silver market has gapped to kick off the trading session on Monday for the second session in a row, as we are now looking at a potential framework agreement being signed on Friday between the Americans and the Iranians. That, of course, has put a little bit of pressure on rates, and as rates drop, typically speaking, silver will benefit from that. That being said, we also have the 50-day EMA above. We are a little stretched at the moment, so I would be very hesitant to chase silver at this point, as it has run so far recently.
Precious Metals Market Outlook and Technical Analysis
Short-term pullbacks could open up the possibility of buying opportunities with the 200-day EMA underneath, offering a potential buying opportunity and a potential support level, but we’ll just have to wait and see how that plays out. This is an area I will be watching closely over the next few weeks.
The market, I think longer-term, is going to be looking at a potential consolidation area between $60 on the bottom and $90 on the top. Ultimately, this is a market that I think just got a little overextended to the downside. Now it’s reacting a little bit too strongly to the upside. I think looking for pullbacks and trading on the right-hand side of the V on a bounce is probably how I’ll trade this market. At this point, the most important thing is to make sure your position size is reasonable in this environment of volatility.
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