Silver Technical Analysis
The silver market is a little bit choppy and quiet in the early hours on Thursday, but this does make a certain amount of sense considering that late on Wednesday we sliced through the crucial $33 level. With that being the case, the market looks as if it is possibly going to continue to try to grind its way toward the $35 level, although it doesn’t necessarily mean that it’s going to be an easy move.
The $35 level is an area that’s been pretty difficult to crack and of course is basically where we fell apart from. Keep in mind that historically speaking, if silver cracks the $35 level, a lot of times it gets a huge rush, a big short covering rally, a short squeeze if you will. And in fact, a couple of times has even made an attempt towards $50.
Silver is a metal that I would be a buyer on dips because it is a precious metal. It’s a way to protect wealth, but it’s also an industrial one. So, if we do have some type of tariff negotiation that leads to a deal, the idea of course being that silver will benefit from more industrial demand. So, it actually has both sides covered in this particular scenario. So, with that, I like buying dips. I do think that we will eventually find our way back towards the $35 level. As far as selling is concerned, it’s not until we break down below the $30 level that I start to have thoughts of doing so.
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