- Silver has gone back and forth during the course of the trading session here on Friday as the 50 day EMA has offered a significant amount of support and it’s probably worth noting that the jobs number came out weaker than anticipated.
- That being said, the market is likely to continue to see a lot of questions asked of this area as it was previous consolidation.
- So, one would have to think that there are a lot of orders in this general vicinity.
- Because of this, I will be watching the $35 level if we start to fall, because I think anything below there, then silver has a serious problem. The U S dollar has been eviscerated during the trading session.
The Important Level Above
But really at this point in time, I think you’ve got a situation where if we can recapture $37.50, then the market goes higher, perhaps trying to get all the way to the $40 level. I do like the fact that we stabilized right here at the 50 day EMA after this pretty ugly pullback. So, it does suggest to me that silver is probably going to continue to attract a certain amount of attention and perhaps buyers.
With this being the case, I think you’ve got a scenario where you are looking to buy dips, but I want to see a little bit of momentum. We’ve seen the drop. Now I want to see upward momentum. We are stable. That’s your first stop. Then you want to see some buying. You don’t need to be the first person into the market to benefit from this. I think early next week we’ll be watching to see if buyers return because if they do, that should send silver back into the previous consolidation area.
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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.