- Taking a look at the silver market, silver initially pulled back just a bit during the early hours on Friday, but we've seen silver turn around and show its strength again as we have raced towards the crucial $33 level.
- It's also worth noting that the 50-day EMA is slicing right through the middle of the candlestick.
- And this, of course, is a sign that perhaps the market is in the midst of trying to sort something out, and when you zoom out a bit and you look at the range between $32 and $34, it makes perfect sense.
So, with that being said, I think this remains a very sideways back and forth type of situation where people try to figure out where we are going to go longer term. If we can break above the $34 level, it opens up a move to $35.50. If we break down below the $32 level, then we will send us to 200 day EMA initially, and then perhaps drops down to $31.
Silver Remains Noisy
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Keep in mind that silver is a very volatile and very difficult market at times to trade. And as a result, you have to be very cautious with your position size. But if you are a short-term range bound trader, this might be your market for the time being. After all, silver is not only a precious metal, but it's also an industrial metal. So, there's a lot of questions about trade going around right now. It has an inverse correlation to the US dollar, generally speaking, and an inverse correlation to interest rates, generally speaking. At this point in time though, it looks like we're in this massive cluster, and it just doesn't seem like we have the momentum to get out of it. So, with that being the case, I think we've got a situation where the market is just spinning its wheels.
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