Christopher Lewis
Add to Bookmarks
Gold Silver

Silver markets have fallen during the course of the trading week, to reach down towards the $25 level. That being said, I think what we see here is the $25 level offering a bit of support, and I think that the support in this market probably goes down to the $24 level where we see the 200 week EMA. Silver of course is a highly volatile contract, so the fact that we have struggled should not be a huge surprise.

SILVER Video 08.03.21

Having said that, what we should take a look at is the fact that the US dollar strengthening has had a negative correlation to this market. This is mainly due to the idea of it taking less of those US dollars to buy an ounce of silver. In fact, as long as we can stay above the $24 level, I like the idea of buying for some type of value play. If we can turn around and reach towards the 50 week EMA, I think that more traders will get involved, especially if we can break above the $26 level. Breaking above that level opens up the possibility of the market moving towards the $28 level.

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.

If we were to turn around a break above the $20 level, then we will challenge $30. After that, the market has a history of going all the way to the $50 level. That being said, if we were to turn around a break down below the $24 level, we will then go looking towards the $22 level where there is probably even more support. I have no interest in shorting silver.

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

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