- Silver continues to be very noisy, and we have been all over the place on Friday.
- It's worth noting that we had recently sold off quite drastically, but we spent most of this week trying to stabilize and Friday was just more of the same.
I do think that it is going to be a very choppy and difficult market to deal with, but I also recognize that it seemingly is a situation where every time we pull back, there are people willing to get in and pick up cheap silver, whether or not if we were to be able to break above the $20.50 level remains to be seen, because that is an area that has been important multiple times underneath the $26 level. Underneath is a massive support level that had previously been massive resistance. So, there's a lot of market memory there. Furthermore, we also have the 50 day EMA. In general. I think this is a market that is probably going to consolidate between the $26 level underneath and the $28.50 level above.
Upward Tilt
It does seem to have more of an upward tilt, mainly due to the momentum of the overall trend, but I think it's probably going to have to spend some time chewing through all of this froth to make a bigger decision. In general, this is a market that you have to be cognizant of the Federal Reserve and interest rates as to where they're going, but I think in general, you have to look at this through the prism of is it going to offer value on a pullback? So far, that does seem to be the case.
Keep in mind that silver is often traded through the prism of industrial use as well, and this makes a big difference in silver as opposed to gold markets, something that a lot of traders assume move in the same way. While the overall direction can be the same, the reality is that the difference between the two is quite wide at times.
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