- The silver has gone back and forth during the trading session here on Monday.
- As we continue to see the markets hang about this same range that we've been in for a couple of weeks, the $37.50 level underneath is going to remain support.
- If we break down there, we could see a move down to the 50 day EMA.
With that, I think you see even more support and anything below there. Then while I don't necessarily want to get short of the market, I'd be a little bit more hesitant to get involved. If we break to the upside, the $39 level is a major target and of course barrier as it's offered pretty significant resistance.
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Silver Continues to See Noise
With that being said, market participants continue to look at Silver in, I believe, fairly positive kind of scenario where eventually we break out, but this is a very quiet time of year as a lot of traders will be on the sidelines due to the fact that they were basically on vacation. So, with that, I still think it's a buy on the dip scenario, but I also recognize this is a market that eventually will start to try to rally towards the $40 level.
If gold rallies again, that certainly helps silver. If the US dollar falls due to perhaps federal reserve interest rate cuts, that could help silver. Conversely though, you have to worry about industrial demand. If we start to see the economy roll over, that actually could be bad for silver and maybe, maybe good for gold. We'll just have to wait and see. Right now, though, I still prefer buying short-term dips in what is a generally positive but sluggish market.
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