- In my daily analysis of the commodities markets, the silver market has seen a lot of volatility in back and forth trading, and I think it’s a situation where we continue to see a lot of questions asked of the overall demand for silver, and of course a lot of the other fundamental factors a come into the picture in order to determine whether or not we will continue to go higher.
One of the things that you keep in the back of your mind when you are trading this market is that silver is actually an industrial metal, unlike the gold market. While there is a certain amount of “precious metals action” to be found here, the reality is that silver is also driven by industrial demand in various sectors, but the most obvious one is so-called “green technologies.” With this being the case, I think you’ve got a situation where a trader interest will be focused on that specifically, but as stated previously, there is a certain amount of precious metals based activity here. After all, interest rates, the US dollar, and several other factors like that come into the picture.
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Technical Analysis
The technical Analysis is rather bullish, but I also recognize that the $32.50 level is an area that a lot of people will be paying close attention to, as the area has proven itself to be rather resistive more than once, and it has been an area that we have seen a massive fight at. Because of this, I think if we can finally get above the $32.50 level, then the buyers will more likely than not come into the market and start to engage in “FOMO trading.” At that juncture, I would anticipate that the market could go racing toward the $35 level over the longer term, possibly even higher than that.
All things being equal, this is a market that I think will eventually break out, but in the short term may end up being more or less a “buy on the dips” type of scenario. The $30 level underneath is a large, round, psychologically significant figure that I think a lot of people will be paying close attention to, especially as the 50 Day EMA sits right there as well.
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