- Silver has gone back and forth during the trading session here on Monday, and we continue to try to sort out where we're going to go next.
- After all, this is a market that has been extraordinarily volatile over the last several weeks as we plunge, and then just kind of sat where we are now.
- Because of this, I think you have a situation where trader are simply looking around for some kind of direction to follow.
At this point, you also need to pay close attention to the idea that silver, although typically follows gold, is not necessarily the same thing. It's inherently more dangerous. And that, of course, is not necessarily always traded as a precious metal. Sometimes it is traded as an industrial one. With this being the case, it looks like we're hanging around the $27.25 level and an area that looks like it's going to continue to be important. This is an area that has attracted quite a bit of attention over the last several days, and should continue to do so as traders also are going to have to pay close attention to the idea that the overall market situation continues to be cloudy but positive.
On a Break Lower
If we break down below here, then the $26 level comes into the picture with the 50 day EMA hanging there as well. That should look very much like a market that is going to see plenty of interest in this area based upon market memory. On the upside, we have the $28.50 level. That has been resistance previously and where we plunged from previously as well.
So, I think at this point you need to look at this through the prism of trying to take advantage of value if and when it appears. Once it does, traders come in and try to take advantage of cheap silver. Keep in mind that industrial use case interest rates, the US dollar, geopolitical concerns, and a whole litany of other reasons can make this market very volatile at the moment, but it is very much still in an uptrend.
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