- The silver market initially plunged during the early hours on Thursday to reach the 50-Day EMA, and of course the $26 level.
- By doing so, the market has found plenty of buyers and therefore we ended up turning around the form a candlestick that suggests that we may end up closing with a bit of a hammer.
- At this point, silver is doing everything he can to save itself as the market has such market memory in this area that a lot of people will be paying close attention to it.
That being said, if the market were to break down below the $26 level on a daily close, that would obviously be a very negative turn of events. The fact that the nonfarm payroll numbers coming out on Friday also could have a bit of an influence on silver, so do keep that in mind. Breaking down below there opens up the possibility of a move down to the $24.50 level, where the 200-Day EMA comes into the picture to offer support. Regardless, I think what you get is a lot of noise just waiting to happen in this market.
On the bullish side
If we can break above the $27 level, I think at that point you will see a lot of people jumping into try to take advantage of “cheap silver”, and that of course jump on the bandwagon for FOMO trading. That being said, you also have to be very cautious with the idea that this could happen during unemployment announcement, which could give you a little bit of a false reading. Ultimately, the $28.50 level above is a bit of a ceiling and I just don’t see us breaking that easily. Between there and $30 there has been a massive amount of selling pressure over the years, and I think this is a situation where you have to be very cognizant of the idea of whether or not we could actually pick up that type of momentum.
Top Forex Brokers
In general, I think this is a market that continues to be very noisy, so be cautious with your position sizing but given enough time we will probably make a bigger decision. Silver is not gold, keep in mind that it is also an industrial metal, so it does move a little differently.
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