Silver Markets Technical Analysis
The silver market rallied a bit during the trading session on Monday, but as you can see, we turned around to show signs of hesitation near the crucial $33.33 level. All things being equal, the markets do look as if they are trying to break higher, but there is quite a bit of resistance at that $33.33 level as well. So, I think what we need to do is practice a little bit of patience and certainly a lot of position sizing and money management at this point.
Remember, silver does tend to be very noisy under the best conditions and these aren’t the best of conditions, so it’s going to be even more noisy than usual. I do favor the upside though and I do think that it’s probably only a matter of time before we break higher, but if we pull back from here, we could drop all the way down to the $32.35 level looking for support.
That’s an area that’s been important multiple times in the past, and it’s probably worth noting that the 50-day EMA sits just below there as well, offering a potential or another reason for support. All things being equal, I do think silver will find its way toward the $35 level. It just may take pretty significant time to get there. So, you’re going to need to show a lot of patience in this type of environment, as silver can cause a lot of damage to your account if you are not careful with it.
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