- Silver was very noisy during the trading session on Thursday as we continued to dance around the 50-day EMA.
- In fact, I’ve used the expression continue to dance around the 50-day EMA multiple times over the last two weeks, but yet here we are still looking at the same thing.
- Ultimately, this is a market that is trying to break out in one direction or the other. And it is worth knowing that we are essentially stuck between the $32 level on the bottom and the $34 level above.
On a Breakout
If we can break out of this range, then I think Silver’s got a big move ahead of it. But right now, we’re just grinding away. So if you are a short term range bound trader, this might be an excellent market for you. The shape of the candlestick for the trading session on Thursday is a bit of an inverted hammer. And that does suggest that there is some ugliness above.
But we’ve gone back and forth so much that it makes a certain amount of sense that we are just killing time and grinding away.
The $32 level has been a bit like a magnet, but ultimately this is a scenario where there is a push and pull due to the U.S. strengthening, which is bad for silver typically. And the idea that there might be industrial demand picking up because the United States and the United Kingdom signed a trade deal during the session. And it looks like the deals might start coming a little quicker. And if that’s going to be the case, the idea of course is going to be that the silver market might do fairly well as there will be more industrial demand. So, we’re just stuck in this range, a little bit of push-pull. If you’re short-term and range-bound, this is your market.
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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.
