Silver Markets Technical Analysis
The silver market continues to look at the $28.50 level as massive support as it previously had been significant resistance. The fact that we formed a hammer during the trading session on Monday, and then, it looks like we’re going to try to do something similar on Tuesday, suggests that the market is likely to continue to see a lot of buying pressure based on the idea that the $28.50 level has been, and will continue to be, significantly important. With all of that being said, I do believe silver eventually takes off to the upside and goes looking to the $30 level. We have the 50 day EMA just above and that could cause some issues as far as resistance is concerned.
But really, I think at this point in time, that’s more or less a short-term issue and not something that we necessarily need to be worried about over the longer term. I do think eventually we will blow through there. With that being said, I think you have a situation where traders just simply continue to see a lot of choppy bullishness. But again, the key word here is bullishness. If the US dollar rolls over a bit, that will certainly help silver as well.
Never get too aggressive in this market though, as it is so inherently volatile. This means paying close attention to the size of your position, and of course how quickly you either add to a position, or when you take profit in this market.
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