Silver Technical Analysis
Silver markets have been choppy in the early part of the trading session here on Thursday as we continue to dance around just below the $60 level. This is a market that continues to see a lot of noisy behavior, and that makes sense considering that interest rates have been all over the place as of late, but elevated in general.
Furthermore, we have recently seen the so-called death cross, where the 50-day EMA breaks down below the 200-day EMA, which is an extraordinarily bearish sign. Silver has essentially been sideways since the middle of June, and despite the fact that we had an FOMC meeting yesterday that was surprising for some, the reality is we haven’t gone anywhere. And I think silver continues to see a little bit of back-and-forth noise.
Technical Damage and Range-Bound Systems
Ultimately, I think this is a situation where short-term traders will continue to be attracted to short-term range-bound systems; I think that will be the way forward. Ultimately, this is a market that, given enough time, will have to make a bigger decision, but I don’t necessarily think that this is a market that longer-term traders are attracted to at the moment.
Over the long term, meaning years, I do like silver. I think there is a major lack of supply compared to what the demand will be, but as things stand right now, we’re somewhat stagnant in the silver market. However, once we get moving, silver tends to move quickly.
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