- Silver has shown itself to be rather stable during the early hours on Monday as we continue to see a lot of back and forth.
- The $24.50 level is an area that continues to be significant support as it had previously been significant resistance.
- So, it does make a lot of sense that we would see a bit of market memory here.
Taking Advantage of Dips
I think buyers are willing to step in and take advantage of the pullbacks, but I also recognize that you have to look at this through the prism of whether or not we can continue to see any significant stability and or buying here. If $24.50 gets violated to the downside, then we could open up a move down to the 50 day EMA. It does sit just above the crucial $23.50 level and that's an area that I think a lot of people will be paying attention to. So, with that being the case, I think it remains by on the dip. The question of course right now is whether or not we can stay somewhat bullish at this point.
I do think at this general region, we have a lot of questions asked about whether or not we can continue the momentum. If you are trading silver based on central bank actions, then you need to be very cautious due to the fact that it doesn't quite behave the same way that gold does. Ultimately, this is a market that I do like to the upside, and I do think that eventually, we may go looking toward the $26 level above, which has been like a massive brick wall. I like buying dips, but I don't jump in with huge positions.
Remember, silver can be very dangerous and volatile, so it is worth being cautious about your initial position sizing. However, if we can break the $26 level, this market could really start to take off and rally significantly. In that case, I want to have a huge position on. However, I have a lot of time at this point to begin the process.
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