The $60 level in the silver market continues to be important, and as a result, this is an interesting day. Keep in mind, though, Friday will be trading without the Americans on board.
Silver
Silver has rallied a bit during the early part of the trading session on Thursday, breaking well above the $60 level. The $60 level is an area that a lot of people will be paying close attention to as it is a psychologically important figure.
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But I also keep an eye on this market because there are a lot of moving crosscurrents at the moment, not the least of which would be the fact that there is a lot of demand for silver and a serious lack of supply. However, you have to keep in mind that there are concerns about the US dollar strengthening and that, of course, works against the value of the silver market.
Technical Levels and Supply-Demand Dynamics
If we were to break down from here, then I think the $57 level offers a bit of a short-term floor. If we were to break down below there, then it's possible that the market could drop to the $50 level. The $50 level is a potential target, and I think it's a potential floor in the market.
If we break to the upside, then the 200-day EMA just above the $67 level could be a bit of a target and barrier. I like the idea of fading rallies at this point, and the first signs of exhaustion, I will certainly jump on.
This is going to be the case going forward, but keep in mind Friday is closed, or at least closed for a big chunk of the day, due to the US Independence Day holiday. And of course, you have to watch interest rates. Although interest rates are drifting a little bit lower, the US dollar is still pretty strong, and that works against silver as well.
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