Silver Technical Analysis
The silver market initially tried to rally during the trading session here on Monday but has rolled over. Keep in mind, it’s going to be very thin trading. It’s a bank holiday in the United States and Canada, as well as, I believe, Japan. With all that being said, I wouldn’t read too much into the daily candlestick.
Interest Rates Continue to Drive Moves
Interest rates in America did rise a little bit in the futures market, but not enough to really get things moving too rapidly. We just seem to be bumping along, with the $60 level offering a bit of support, extending down to the $55 level. This area remains the most important area of the chart.
Ultimately, a short-term pullback at this point in time probably attracts a certain amount of buying pressure. But if we were to break down below there, then the market will challenge $55. Anything underneath that level would be very negative, as it would be a breach of massive support.
To the upside, we have the 50-day EMA as well as the 200-day EMA. Basically, right around the $64 level would be the average of the two, and that’s an area that previously had been support. So, would it be resistance on the way back up? That will be the question.
Follow the interest rates and see how they’re behaving. If interest rates start rolling over, that will generally speaking help silver. We’ll just have to see if we get a little bit of external pressure to the upside in order to help buyers out here.
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