Silver Markets Technical Analysis
The silver market has gone back and forth during the trading session on Thursday, as we continue to see a lot of back and forth choppy behavior. In general, this is a market that I think is paying very close attention to the $32.50 level, an area that previously had been very difficult to break above, and now I think we are trying to build up the necessary momentum to finally do that.
Keep in mind that traders have a lot to think about when it comes to silver, not the least of which, of course, would be interest rates around the world dropping. So that does put a little bit of a floor under silver, but at the same time, the market also looks at the industrial use case scenario of silver as it’s very highly sought after in a lot of green technologies.
Short-term pullbacks at this point in time, I do think have plenty of supporters underneath and I’m especially interested in the $30 level, which has now proven itself to be both support and resistance multiple times. Beyond that, the 50-day EMA sits at roughly $30.33 and is rising, so I think that also adds a little bit of validity to a potential floor.
On a daily close above the $32.50 level, I suspect at that point in time, silver might go looking toward the $35 level eventually. Either way, I don’t really have a scenario in which I would get short of silver anytime soon.
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