Silver Markets Technical Analysis
The silver market initially tried to rally during the session on Tuesday, but it looks as if it is going to struggle a little bit ultimately, and I think this is a market that will eventually try to sort itself out and rally.
But the retail sales coming in hotter than anticipated in the United States has yields rising. So, it’s working against silver a little bit. That’s actually not a bad thing because the market is a little overdone. A little bit of a pullback offers value and I do think that the $30 level is more likely than not going to attract a certain amount of buying.
Furthermore, we have the 50 day EMA racing towards that level. So that’s also something worth paying attention to as the market does love its large, round, psychologically significant figures. We’ve seen action at the $30 level before, so would not be a huge surprise to see it come into the picture again as a potential area of support.
Above, we have the $32 level offering a ceiling, that’s a large round figure that has been resistant. I think that’s eventually where we go, but we may have to pull back just a little bit to offer enough value and entice enough traders into the market. All things being equal, silver, of course, will run on interest rates, industrial demand and to a lesser extent, geopolitical tensions as it is a precious metal.
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