- The silver market had a negative early hours session on Tuesday, but buyers returned as the open outcry session began.
- Traders are trying to determine whether the uptrend can continue as the market sees a lot of inflows.
- While the silver market is at a relatively stretched level, the momentum is something that continues to help the metal.
Wealth preservation is a huge part of what is going on in the silver market. However, gold is generally preferred for this type of action. Silver tends to follow gold over the long term, so traders need to keep that in mind. The $26 level above is a significant barrier, and traders need to pay close attention to it as we have seen historical action in this area previously. If the market breaks above this level, it opens up the possibility of attempting to get to the $27 level, allowing for a huge move to the upside.
On the other hand, if the market were to go down to the $24 level, there is a lot of support underneath that level. This area was the epicenter of a major consolidation area several months ago, and the market has been very noisy in that area. This suggests a certain amount of order flow waiting to get involved in that area.
Noise Ahead
This is a situation where there is a lot of noise and volatility in the market. Traders can expect to see a lot of upward pressure, and buying on the dips is likely to be the best way to play the market over the longer term. However, if the market were to break below the $23.50 level, that could be the beginning of the end of the uptrend we had been in for so long.
Despite the volatility, the silver market continues to see a lot of inflows as traders try to figure out whether or not the uptrend can continue. Wealth preservation is a major concern for many traders, but gold is generally preferred. While the silver market is at a relatively stretched level, the momentum is something that continues to help the metal.
Traders need to pay close attention to the $26 level, as it is a significant barrier that could open up the possibility of a move to the $27 level. However, if the market were to break below the $23.50 level, it could signal the end of the uptrend. Nonetheless, traders can expect to see a lot of noise and volatility in the market. Buying on the dips is likely the best way to play the market over the longer term.
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