- Silver initially pulled back a bit during the trading session on Wednesday but seems to be finding a significant amount of support as the 50-day EMA has coming to the picture for the second day in a row.
- Remember, silver is a very volatile market, so I would be a bit cautious here, but it is a positive sign.
I still see the $32.35 level above as a major barrier. And although we broke it recently, I would expect a little bit of market memory to come into the picture in that general vicinity. Underneath, we have the $31 level that could offer a certain amount of support. Breaking down below there probably sends silver much lower, perhaps down to the 200-day EMA, which is currently trading at the $30 level.
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The Trend Should Continue. Eventually.
But right now, that doesn't look likely. In fact, with concerns about global trade and everything else going on, I think you do have a little bit of a bid for precious metals, especially considering that the US dollar is a bit soft. That being said, silver is also an industrial metal, so you do have to pay attention to that as well, because demand could be a little lower than originally thought.
Nonetheless, Silver is in an uptrend, and I would continue to look at it as such. And with that being the case, I do favor buying it, not shorting it. Short-term dips should continue to be value propositions, but keep in mind, this is a very dangerous contract, so you do not want to get too big in your position. I do believe that eventually, if we could break above the $33.33 level, then we could go looking to the $35 level. But right now, we just don't have the momentum. This might be more of a grind higher than anything else, so do be prepared for that.
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