- During the trading session on Tuesday, we have seen the silver market drop down to the familiar $33 level, an area that’s been important multiple times over the last several sessions.
- I think we’ve got a situation where you are looking for dips in order to buy silver, and at this point in time it’s also worth noting that the markets continue to see the silver market as one that is waiting for some type of news to get going.
Massive Range
At this point in time, the market is looking at the $34 level as a massive resistance barrier, while the $32 level has offered massive support. That being said though, recently we seen the $33 level, or what consider as “fair value”, as support. This could be the first sign that we are about to see the buyers take the market to the upside and really take off. Ultimately, the market is going to continue to see a lot of volatility and noisy behavior, but if we can break that barrier, then I really think the silver market takes off to the upside.
The 50 Day EMA is sitting just below the crucial $33 level and has also offered support right along with the $33 level. In general, I think that sooner or later we have to get some type of clarity when it comes to the industrial demand for silver, which of course a lot of people will have to keep in mind that silver is not only a precious metal, but it is also an industrial one. Because of this, we will wait to see what the economic numbers are going to be, and of course whether or not economies around the world start to take off. If they do not, then I think you have got a situation where silver could face quite a few headwinds, but given enough time, I do think that you also have to pay close attention to the US dollar as well.
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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.