The silver market initially fell a bit during the trading session on Thursday, as the silver market continues to see a lot of pressure.
That being said, we have seen a nice bounce here with the 60-dollar level underneath, offering a bit of a floor.
If the market were to continue to see a little bit of a bounce, then we could make a move towards the 200-day EMA. That being said, I'm a little bit leery of buying a ton of silver.
It is worth noting, though, that the silver market typically has a negative correlation to interest rates, as the higher interest rates really crush these non-yielding assets. The $60 level is a large, round, psychologically significant figure that, of course, a lot of people will be watching. If we were to break down below there, then the market could go looking to the $50 level underneath.
Key Technical Levels and Global Influences
If we rally from here, then we could see this market challenge the 200-day EMA. The 200-day EMA, of course, will cause technical traders to pay close attention to it. The headlines in the Middle East continue to be very volatile, and they, of course, have a major influence on the bond markets, so keep in mind that could be what we need to watch more than anything else.
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The $60 level could be the bottom of a larger consolidation area all the way to the $90 level. Longer term, there is most certainly a massive amount of demand for silver, and the supply is nowhere near enough to keep up, at least not comfortably. So, I like silver longer term, but short term, I think we have to recognize that traders are paying more attention to the bond market than anything else. You do have to be very careful, and you do have to have the proper position size.
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