Silver Technical Analysis
The silver market has been somewhat noisy during the early part of the trading session on Tuesday as we are sitting on top of a major demand area between the $55 level and $60. That is an area that I think the market is trying to defend at the moment.
It’s worth noting the yields have dropped a little bit during the trading session here on Tuesday. That provides a little bit of pressure relief on silver. Ultimately, we still have a situation where a lot of people are very concerned about the idea of energy inflation. That has not gone away, and I do not think that is going away anytime soon.
Is Silver Trying to Build a Bounce Here?
We are calming down a little bit, and that can give us an idea of silver perhaps trying to bounce. Maybe it is setting up a short-term move, but ultimately this is a market that I think is just kind of bumbling around.
Perhaps longer-term traders are accumulating. I know from the physical side, we are probably seeing some of that. Leveraged positions in the futures market or in a CFD position might be a different story. It is a little bit more dangerous.
Ultimately, though, this market, I believe, is one that is closer to the bottom of the overall range than the top. Therefore, little bouncing will probably be expected. Silver is a choppy market at the time, and it makes sense, as most of what is moving things will be headlines that are random and due to comments around the world.
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