- Silver has had an explosive run during the session here on Monday. And it looks like we are doing everything we can to reach that crucial $40 level.
- However, one thing that I cannot help but notice is that volume just isn’t that exciting right now.
- And that does make a certain amount of sense. mean, we’re late July trading.
So, I don’t know if I trust these pushes in general. Now I do believe that eventually we will reach $40, and we break above that part I trust. But I also recognize that you need to see a reason. We need to get people excited about buying maybe starting up a short squeeze as things stand right now. It looks like we’re testing basically the heights and maybe struggling a bit.
Buying Dips Still
I look at this as a market where if we get pullback, you have to be thinking about buying, especially if we were to get back down to the $37 50 cents level. I don’t think we will. But if we do, there’s a lot of market memory. And I think that is an area you have to pay close attention to. The market breaking down below that level would be rather interesting and could open up a move down to the $37 level, possibly even $36.50. I would not be excited about shorting this market, but I would recognize at that point that there would be some problems with the overall uptrend.
I don’t expect to see that, but it’s obviously something that could happen. If we break above the $40 level, that would be extraordinarily bullish. And I would think that it would kick off another move, probably $2.50 worth of movement, maybe even a little more than that. That has us looking at $42.50 based on the measured move. Either way, this is a long only market right now, and I would treat it as such. I just don’t want to chase.
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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.