- Silver initially pulled back just a bit during the trading session on Thursday, but you can see that the $32.35 level has in fact offered support.
- This is an area that I’ve been paying close attention to for some time.
- And now that it has been tested and then we bounced, that’s a very good look.
That being said, keep in mind that Friday is the non-farm payroll announcement coming out of the United States. And that obviously has a major influence on how markets might move. With that, we will see the US dollar move, and as a result, that will have an outsized effect on silver as it is so highly sensitive to the US dollar in general. If we were to break down below the bottom of the candlestick, then we could drop down towards the $32 level followed by the 50-day EMA.
On the Other Hand
On the other hand, if we do continue to rally, and I think we will eventually go one way or the other, the $33.33 level is an area that you have to pay close attention to. Ultimately, this is a market that I think is going to continue with its uptrend, but I also think that it is going to be very volatile, which isn’t really a stretch considering just how volatile silver is under the best of circumstances. So, with that, I’m paying close attention to any pullback that we get, and I’m watching it for a potential buying opportunity. But I also recognize that position sizing will be crucial. As long as that’s going to be the case, then we have to pay close attention to how much we put into the market at any one time. Nonetheless, regardless of everything else, we are in an uptrend, you have to assume that we will remain so.
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