- The silver market initially pulled back during the trading session on Tuesday, but it looks as if there are buyers underneath willing to take advantage of “cheap ounces.”
- Ultimately, this is a market that I think continues to see a lot of noisy behavior, as is typical for silver, which of course is an extraordinarily volatile market to say the least.
With that being said, the market is likely to continue to favor the upside overall, and I am keeping an eye on the $33.33 level for a potential buying opportunity. If we pull back to that area and bounce, I would be interested in getting long on that move. If we were to break down below the level, then the market probably goes looking to the 50 Day EMA, currently near the $32.50 level. All things being equal, this is a situation where traders continue to try to find some type of value, and a market that is absolutely wild under the best of circumstances. Unfortunately for traders, these are not the best of circumstances, and therefore it’s worth noting that position sizing and risk management will be paramount.
Silver Follows Gold
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Keep in mind that the silver market does tend to follow gold over the longer term, and therefore it’s worth paying close attention to what the gold market is doing at the same time. Typically, one of these markets will lead the other, but the gold market of course is a little bit saner than the silver market, so it gives you a bit more clarity than this market can at times. All things being equal, this is a market that I’m looking for buying opportunities, but I also recognize that we are getting close to a major swing high, and the $35 level above is a major resistance barrier as it was where we sold off quite drastically during autumn of 2024. I think eventually we can break above there, but it’s going to take some work.
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