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Christopher Lewis
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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.

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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.

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