- Silver has been all over the place during the trading session on Wednesday as we are just digesting the massive gains from Monday.
- I’ve had a few questions asked of when will silver finally break higher? The answer is we don’t know.
- After all, markets will do what they’re going to do, but we also saw a massive move of about 75 cents on Monday.
So now that we find ourselves at a pretty significant resistance barrier in the form of a previous high, we now have to see whether or not we have a reason to break above the $35.50 level. If we don’t have that momentum, then we are likely to pull back towards the $33.80 level, possibly even $33. Both of those would be a potential buying opportunity from what I see, unless of course something changes overall as far as fundamentals are concerned. There are some concerns out there about the US employment situation that I think are probably a little bit premature, but right now that could have a drag on silver just simply because you have to wonder whether or not there will be enough industrial demand.Volume on Monday is Important
That being said, the move on Monday did have a lot of volume in it and the fact that we continue to bounce after selling off in this relatively tight range over the last 48 hours does suggest that there are plenty of buyers and that we will eventually break to the upside.
You’ll just have to be patient. Keep in mind the real jobs number, the BLS jobs number, comes out on Friday, so Thursday could be a little lacking. You just never know when is comes to this very volatile marketplace.
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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.