- The silver market initially fell during the trading session on Friday but continues to see support at the same level.
- This level, the $32 level, is obviously very important, and therefore I think it is worth noting that we continue to see people interested in this region.
- As long as we can hold the $32 level, I think you have a real shot at this market staying in the same region that we have been in.
- Recently, we’ve seen the silver market bounce around between the $32 level, and the $34 level above. The $34 level has been like a brick wall as far as a ceiling is concerned, as we just can’t seem to get above there. Because of this, if we were to break above the crucial $34 level, then it’s likely that we would see a move toward the $35 level, perhaps even the $35.50 level.
- On a break down below the bottom of the candlestick from the Thursday session, we could test the 200 Day EMA, which is sitting right around the $31.33 level below.
Anything below that level then opens up the possibility of a significant sell off, but at this point in time I don’t think that happens very easily. Quite frankly, silver seems to have a bit of a bid underneath it, and I think that probably continues to be the situation going forward.
The technical Analysis of course is likely to be looked at as somewhat sideways over the last couple weeks, but when you look at the longer-term charts, it’s very difficult to think that we are exactly negative at this point. I think we are just simply trying to work off some of the excess froth that has been part of this market during the previous couple of months. After all, we have plunged lower, only to turn around and show signs of extraordinarily strong momentum. In other words, this is a market that will remain noisy, but I do think given enough time we will probably try to go higher.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
