Silver markets of course gapped higher to kick off the trading session on Thursday, but then fell to fill that gap before bouncing again. All things being equal, it was a very thin day and of course is the last day of the year, so one would have to wonder whether or not there was a significant amount of position squaring going into 2021? I suspect that is probably a big part of the market but at the end of the day I like the idea of buying silver regardless, especially in some type of pullback. I believe that there is a significant amount of support near the $25 level, especially as the 50 day EMA is starting to cross that area.
SILVER Video 04.01.21
To the upside I believe that the $28 level will be the target initially, followed by the $30 level. Ultimately, I think that the overall trend of buying on the dips continues, so therefore that is exactly how I will play the precious metals markets, silver included. If we can break above the $30 level, that will kick off the next attempt to get towards the $50 level, which we have seen happen a couple of times in the past once we clear the $30.
All things being equal, I have no interest in shorting this market and I think that there is support at the $24 level as well as the previously mentioned $25 level, and then down at the 200 day EMA which is just above $22 currently. As long as the US dollar continues to take it on the chin, silver will eventually go higher.
For a look at all of today’s economic events, check out our economic calendar.
