Silver Markets Technical Analysis
The silver market rallied just a bit during the early hours on Wednesday, as we continue to threaten the $31 level. At this point, we have to ask whether or not this is a market that will continue to see a lot of choppy, back and forth behavior, but I think at this juncture, you have to look at how the $30 level underneath has a short term floor. There is a lot of noise just above, and it does make a certain amount of sense that silver might struggle, but I think it’s a like a short term type of concern.
And then in the longer term we will eventually break out. This will be especially true if we start to see traders bet on the idea that the Federal Reserve is going to start cutting rates. We’re already starting to see that shift yet again. But it’s also worth noting that this is something that we’ve been messing around with for a good year.
Citibank just yesterday suggested that the Fed may have eight cuts in a row starting in September. I don’t know if I believe that, but it shows you just how wild the speculation is starting to get again. Short term pullback should continue to be buying opportunities as we are most certainly in an uptrend. And there’s no point in trying to fight it.
If we can break above the $32.33 level, then I think it opens up a move to the $35 level, followed by $37. I have no interest whatsoever in shorting silver, but if we were to break down below the $28.50 level, then I would have to reassess some of the analysis.
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