- Silver initially fell during the trading session on Wednesday to break down below the 50 Day EMA, but I think at this point in time, the market is going to continue to see a lot of noisy trading, but that’s not particularly out of sorts for silver.
- After all, it’s a bigger sized contract and does not have the volume the gold has, and it has a multitude of other factors that come into the picture to really move things at this point.
Technical Analysis
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The technical analysis for the silver market is bullish over the longer term, and it is interesting to see that we bounce from the crucial 50 Day EMA, as well as have recaptured the $37.50 level. That’s an area that I’d be paying close attention to, because it has served as both support and resistance over the last several months. If we can stay above the $37.50 level, then I think silver has a real shot at turning things around and reaching higher levels yet again. All things being equal, at that point I would expect to see this market go looking at the $39 level. The $39 level has offered a rather significant resistance multiple times, and now it looks as if it should make a nice target for traders to get involved.
If we were to break below the bottom of the candlestick for the trading session here on Wednesday, that could open up the possibility of a drop down to the $36.40 level. Anything below there then opens up the possibility of a move to the $35 level, but that’s not necessarily what I’m looking for at the moment. With that being said, I expect a lot of noisy trading, but at the longer-term trend is most certainly bullish, and that has not changed yet, despite the fact that we recently made a “lower high.”
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