- Silver went back and forth during the trading session on Wednesday.
- In the early hours, as we continued to dance around the $27.25 level, we formed a hammer here.
- And that, of course, is something worth paying attention to as well during the Tuesday session. So, it does suggest that perhaps we may stabilize.
If we do, the odds are we will go higher from here. The problem, of course, is that the $28.50 level is a massive resistance barrier. That's going to be somewhat difficult to break the above area. After all, historically speaking, it's caused a lot of problems in that massive sell off during the trading session on Monday. Certainly, will have a lot of people involved in it.
Stagnation Could be Positive
So, with that being said, it's almost as if you can say the longer we hang out in this area, the more likely it is that silver rallies. On the other hand, if we break down below the bottom of the hammer from the Tuesday session, that could send this market down toward the $26 level, an area that has been historically important multiple times.
The 50 day EMA is sitting in right around there as well, and I think ultimately it could operate as a floor in the market. Anything below there for a significant amount of time then means that silver is done in the periodic short squeeze is over. I do expect a lot of noisy behavior. Silver is very rarely quiet and it's not as the same thing as gold is when it comes to geopolitical safety.
So, keep that in mind. It is more or less an industrial matter who happens to be a precious metal, not the other way around. So, it has its own behavior. Above the $28.50 level. There is a ton of selling pressure all the way to the $30 level, so please be aware of that. This is an area that has been impotent over the last several decades, and as a result it is likely to be an area of concern going forward.
Ready to trade our Forex daily analysis and predictions? Here are the best Silver trading brokers to choose from.