- The silver market went back and forth during the course of the trading session on Monday reaching towards the $35.50 level before bouncing quite significantly.
- All things being equal, the market has shown quite a bit of resiliency here.
- And I think that is something that you need to keep in the back of your mind.
Ultimately, I do think that we could go looking at the $37.50 level. And if we can break above there, then the market is likely to continue going towards the $40 region if we break down below the $35 level itself, then we will more likely than not break down below the 50 day EMA and Go plunging perhaps down to the $33 level where the 200 day EMA reaches in general this is a market that I think continues to be very noisy as we are working off of some of the froth here that had entered the market after shooting straight up to the moon. This is of course something to pay close attention to as we were overdone.
Industrial Demand and More
Silver has an industrial component to it as well. So, you should pay attention to whether or not the demand continues to be strong. And that means that we need a fairly strong economy. Right now, there are a lot of concerns and questions about the economy. But as things stand, currently, it still looks like silver wants to go higher if for no other reason than just simple inflation. Ultimately, though, I think you’re going to have to be patient, you’re going to have to look at this as a potential buying opportunities and simply be able to hang on to the position for a while, as the volatility of silver can cause a few headaches for traders at this point in time.
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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.