The $80 level in silver being broken to the upside, as the market continues to follow the interest rate markets.
SILVER
Silver continues to rip higher. You can see that we have shot straight up in the air and through the crucial $80 level. This of course is a big victory for bulls as silver has been somewhat compressed over the last couple of days.
The 10-year yield plunged and that gives a little bit of cover for silver as a non-yielding asset for money managers to come in and pick it up. After all we may, if we get enough peace in the Middle East, we may begin to actually focus on supply and demand. That’s what shot silver straight up in the air to begin with.
Fundamental Factors and Potential Targets
I don’t necessarily buy that we are about to do the same again, but I do recognize that there is a fundamental story here in silver that cannot be ignored. The $80 level being broken is a good sign, it does suggest that we continue to see upward momentum perhaps reaching towards the $90 level. That’s a large round psychologically significant figure that has been important multiple times and could be a target.
Any breaking of that opens up the possibility of $100. Short-term pullbacks I think continue to be supported basically by the 50-day EMA but really at this point I don’t like the idea of trying to short this market I think that just opens up more buying opportunities.
Watch the 10-year yield in America if it breaks back above the 4.30 level then things could get ugly for silver. But unless we get some type of really negative headline out of the Middle East and they have been pretty positive as of late I think silver is ready to go.