- Silver has pulled back significantly during the trading session on Friday, but it is trying to turn things around.
- That's very interesting to me, considering that the market has been fairly noisy and bullish for some time, and we have now reached an area where traders are starting to look at as previous resistance.
For example, the $32.35 level has been a major barrier that extends to the $32.50 level, and I think you need to pay close attention to it. This pullback, of course, opens up the possibility of a bounce back, but ultimately, I think we have to watch what's going on in the gold market as well, because one will quite often lead the other.
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On a Break Lower
On a breakdown below the $32.35 level, it could open up a move down to the 50 day EMA, which is closer to the $31.50 level. In general, I am bullish on silver, but I also recognize that there's a lot of noise here. And I do recognize that typically silver needs gold to lead. Keep in mind that silver is also an industrial metal. So that is something that you'll be watching closely because there are a lot of concerns right now about global trade and manufacturing.
We are in the midst of a potential tariff war still that hasn't gone anywhere. So that could make a significant dent in the bullish case for silver as far as the industrial portion is concerned. However, it's also worth noting that the market is likely to see maybe some demand for safety, although I'm not as excited about that when it comes to silver because of the volatility. If I wanted a commodity for safety, it would be gold. Gold's much more stable. So keep that in mind. I do believe that we go higher at this point, but I also recognize that there is a lot of noise ahead of us.
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