FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
Silver

Silver markets initially rallied during the trading session on Monday but has given up the gains to show signs of exhaustion as we are sitting around the $28 level. Ultimately, this is a market that needs to come to grips with the idea of industrial demand and of course what is going on with the US dollar. That being said, the market will move counter to what the dollars doing under most circumstances, so if the US dollar search the fall, it could make a certain amount of sense that silver would get a bid. Furthermore, both silver traders are looking at the market through the prism of the reopening trade and increased industrial demand.

SILVER Video 01.06.21

The overall industrial demand should pick up as companies and economies around the world continue to reopen, but there seems to be a lot of massive resistance between $28 and $30 that is difficult to break above. It should be noted that Monday was Memorial Day, which of course means that the markets were only open for a few hours here and there. Nonetheless, we are in an uptrend and have been for some time. Because of this, I believe that dips will continue to be bought and that the 50 day EMA which currently sits just below the $27 level, will also attract a certain amount of attention.

Advertisement
Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

With that in mind, I like the idea of taking advantage of the overall uptrend, but I also recognize that pullbacks at this point will be thought of as value that you can take advantage of. With this being the case, I like the idea of finding value and jumping all over it when I get a chance.

For a look at all of today’s economic events, check out our economic calendar.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker