Silver Technical Analysis
The silver market has gone back and forth in early trading on Monday as we continue to see a lot of questions asked about the momentum. That does make a certain amount of sense because we shot straight up in the air to get here. So, I think ultimately, we need to determine whether or not we have enough of a reason to continue to go higher. The $37 level above is significant resistance. And if we can break above there, I think that opens up a move to $40, and that is what I expect.
If we were to break down below the $35.48 level, then we could drop down to the $34 level, maybe $34.65, but either way, I think that we would find buyers sooner rather than later at lower levels, given just how bullish the market had been previously. Over the longer term, I do think that we break above $37 and go looking at the $40 level as a target, possibly higher.
But right now, you have to keep in mind that silver is not only a precious metal, but it’s an industrial one as well. It certainly seems as if markets around the world are a bit risk positive despite the fact of everything going on in the Middle East. So, it does make a certain amount of sense that silver joins the party. I have no interest in shorting this market, at least not until we get below $32, something that we’re nowhere near doing at the moment.
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