Silver Markets Technical Analysis
The silver market rallied just a bit during the trading session on Monday as the 50 day EMA continues to be a very significant technical indicator that a lot of people will be paying attention to as per usual. With that being the case, I think you have to look at this through the prism of whether or not you’re finding value and I do think you are finding value at this point. So with that being said, I think we continue to see plenty of buy on the dip traders get involved and quite a few defend the 50 day EMA as well as the $28.50 level.
All things being equal, I do think that we are trying to get to the $30 level, which of course is a large round psychologically significant figure and an area where a lot of people would be involved. If we can break above the $30 level, then the market could continue the overall uptrend. In the short term, it wouldn’t be surprising to see this market as one that goes somewhat sideways because there is a serious lack of economic announcements during the day to really spook the market and that has a lot to do with the fact that we may just see a gradual lift in risk appetite as there isn’t much to be worried about. Silver of course is volatile, so this could be a big advantage for silver, assuming that there is no shock news. The market continues to look more positive than anything else going forward.
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