The silver market fell to kick off the session on Wednesday, only to turn around and show signs of strength.
SILVER
The silver market initially fell during the trading session on Wednesday but turned back around to show signs of resilience during the day. That being said, this is a market that is underperforming gold despite the fact that interest rates have been falling a bit during the day. Quite frankly, that's not overly surprising because this is starting to act more like the silver of old. In other words, the way silver has always somewhat behaved.
It has always been a situation where silver plays second fiddle to the gold market. Gold markets are probably the first place that people get involved when they try to trade metals and of course the silver market is secondary because of the volatility of the market under the best of circumstances. Let's be honest, this is not the best of circumstances.
TECHNICAL RESISTANCE AND MARKET VOLATILITY
If we rally from here, the 50-day EMA currently sits at the $78.17 level, and I think looms large as potential resistance. If we can break above there, then it's possible that the $80 level gets targeted, but I just don't see that being easy.
The market does look like it tried to form some type of massive double bottom centered around the $70 level. Keep in mind that a lot of the movements are based on the bond market which currently is based on the latest tweets or headlines coming out of the Middle East.
Expect it to be very difficult during the next couple of days, but I do think we are starting to turn a corner here and see perhaps the opportunity for silver to rise again. If we do, then I think longer term you're probably looking at the market trying to reestablish a range between $70 on the bottom.