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Christopher Lewis
Silver

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.

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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.

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