Silver was bullish again on Wednesday, as we are trying to break to the $100 level above. Short-term pullbacks could also be buying opportunities.
Silver
Silver has been rather bullish during the trading session on Wednesday, but it is struggling to maintain above $90, although really, I think the real question will be $91.50 based on a shooting star from February 4, a couple of Wednesdays ago.
Ultimately, if we can break that area, then it opens up the possibility of silver going to the $100 level. It clearly is a relatively bullish market with the exception of the very dramatic candlestick that we saw formed on January 30.
Resistance and Market Structure
The question now is can we keep up the upward momentum? If we can break out above $91.50, it could open up a pretty big squeeze. We still have a lot of the same structural issues, but we just got too far ahead of ourselves, and I think that is what we are trying to come to terms with here.
Ultimately, I believe in buying the dips, but I also recognize that we are still technically in the consolidation phase and will have to see how this thing closes at the end of the session. The $80 level I think could offer support with the 50-day EMA, and most certainly the $70 level would if we returned to that level.
And if you have been watching for a while, I suggest that after this dramatic candlestick on the 30th of January, the best-case scenario was some sideways boring trading. We are still in the midst of that, but with the US dollar shrinking a little bit during the day and of course still an underlying supply demand imbalance, I do think eventually silver finds its way higher.
Right now, we are struggling with a little bit of a pullback after a fairly parabolic move over the last couple of days would not surprise me. That should end up being an opportunity though.