- Silver looks extraordinarily confused.
- That makes a certain amount of sense considering that silver is pushed around by a multitude of different factors, not the least of which would be the US dollar.
- Furthermore, will you look at the technical analysis it’s easy to see that we are at a major point of inflection, and therefore we need to be somewhat cautious.
As a bit of a side note, and I’m not necessarily saying this means anything, silver looks a lot like Bitcoin. We had a massive surge higher, and since then have seen buyers come in on dips, but they have not been able to push it to a fresh, new, swing high recently. In other words, although it’s bullish, it seems to be running out of momentum.
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The silver market currently sits right below the $20.50 level, and perhaps more importantly for technical traders, the $29 level, which is backed up by the 50 Day EMA indicator. If we can break above that region, then it’s likely that silver could go looking to the $30 level. On the downside, we have the $27.50 region that has been rather supported as of late, which of course is also backed up by the 200 Day EMA indicator, one that a lot of people will pay attention to for the longer-term trend. In other words, we are in the middle of a lot of noise, and therefore I think we will continue to see a lot of volatility in the silver market.
Volatility in silver is not exactly a new thing, nor is it rare. Keep in mind that this is an extraordinarily big contract on the futures markets, so traders tend to be a lot more cautious and jittery when trading it. It’s probably also worth noting that silver is not only a reflection of interest rates and the strength or weakness of the US dollar, but it is also an industrial metal, which is one of the things working against it at the moment. In other words, I think we have a lot of push/pull trading ahead of us.
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