- The silver market tried to bounce a bit during the course of the trading session on Friday as the $30 level offered a bit of psychological support.
- It’s also an area that previously has been significant resistance, so it does make a certain amount of sense that we would have a reaction here.
- I do think that the market is trying to turn things around, and in the longer term it’s likely that we will try to go to the highs.
That being said, you need to keep in mind that the geopolitical situation could continue to favor silver, due to the fact that the geopolitical noise out there continues to have people looking for some type of stability and some type of safety. That being said, silver is definitely less of a hedge against danger than gold is, so I think you need to keep that in the back of your mind as well. With this being the case, the market continues to see a lot of choppy volatility, and I think that will continue to be the case going forward.
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It’s worth noting that the 50-Day EMA is near the $28 level and is rising. I think that will continue to be a major support level given enough time. However, if we pull back from here, I think you also need to pay close attention to interest rates in the United States, because it’s not just moving averages that you can rely on.
That being said, the $30 level of course is an area that will attract a lot of attention, but even if we break down below there, I think the $20.50 level is an area worth paying close attention to, as it has previously been a bit of a magnet for both buying and selling. Either way, this is a market that is in a strong uptrend, and I just don’t see that changing anytime soon.
Ultimately, if we can break above the recent high, I think that silver could go looking to the $35 level, possibly even as high as $50 over the longer term as we have seen a couple of times in the past. The silver market remains very volatile and dangerous, so make sure you keep your position size reasonable.
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