Silver Technical Analysis
The silver market has rallied a bit during the trading session here on Friday as we continue to see a lot of noisy behavior. All things being equal, this is a market that I think, given enough time, could very well find itself trying to out whether or not we can get towards the $40 level or not. The market should continue to see plenty of support near the $37.50 level, which is an area that previously had been massive resistance. At this point, a pullback to that area should attract a lot of attention, and I do think a lot of value hunters would be interested in it.
A breakdown below that level could open up a move down to the $36 level, but right now that’s not what I’m looking for. I believe we have a situation where traders will continue to play back and forth in this range in order to build enough momentum to truly take off to the upside. If we can break above the $40 level, then silver really starts to fly.
I like the idea of buying dips. It has been in a strong uptrend for a while. So, ultimately, there is a lot of chop. There is a lot of noise. And therefore, I think you have to look at this as a market you are trying to make a little bit of value work in your favor on short-term dips. All things being equal, I have no interest in shorting silver regardless. And I think ultimately, we do go to the upside for a while.
For a look at all of today’s economic events, check out our economic calendar.