The silver market was noisy on Friday, as the markets waited for the Non-Farm Payroll numbers. At this point, the uptrend continues
The silver market was all over the place during the trading session on Friday, which wouldn't be a huge surprise considering that it was non-farm payroll Friday and a lot of traders will have been in and out of the market quite a bit.
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The $80 level is a large round number that I think continues to offer resistance all the way to the $82 level, and we did find that resistance during the day despite the fact that the non-farm payroll announcement came out weaker than anticipated. In this environment, I think you've got a situation where you have to look at this as a buy on the dip scenario.
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I also look at it as a market that is in a $12 range. The $70 level right now continues to be a floor in the market, with roughly $82 being the ceiling. Ultimately, this looks like a market that is ready to go higher, and as crazy as it sounds, I think that's the only play here. This is a market that has run much farther than any analyst that I know of, with the exception of a few wild calls out there, has said it would, and now $100 is only 25% from here. While that's a lot, it could happen this year.
If we give up $70 and start following the downtrend from there, we probably go looking to the 50-day EMA right around $62.90, and then after that, $50. Sooner or later, this massive bubble pops. The question is, where's the floor in silver after all of this? We don't know, but it's not going to be $12 like it was the last time we had a major run-up. It will be interesting to see how this plays out. As things stand right now, dips continue to be buying opportunities.
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