- Silver has fallen pretty significantly during the trading session on Friday, but it is trying to hang on to the 50 day EMA.
- The 50 day EMA of course is a technical indicator that a lot of you will be paying attention to and this does at least show some signs of hope, but I'm not really keen on silver or I should say, I believe silver will lag in reference to gold as the market is falling the way it has shown just how brittle it can be.
While the gold market did pull back a little bit in the early hours of Friday, silver really got hammered at one point in time, the XAG/USD pair was down about 2%. Now it looks like we are at least trying to hang on to the $30 level as support, which makes a certain amount of sense considering that it's a large round psychologically significant figure and an area where I would imagine a lot of options traders are watching. If we were to break down below there, then it opens up the possibility of a move down to the 200 day EMA currently hanging around the $29.30 level or so.
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On the Upside
To the upside, if we can break above the $31 level, I think that opens up the possibility of silver to go much higher, probably to $32.50. The previous uptrend line has offered resistance. So that dissects right about where I think the buy and sell orders probably end up being, especially around that $31 level. So it all ties together for a market that's very noisy but still trying to figure out what to do with the longer term. I think we're probably neutral to somewhat negative right now. That being said, the $31 level and the double bottom down at $28.75, I think are the two main points to watch if we break above or below that should give you a heads up as to which direction we are going.
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