- Silver has been trading back and forth during Thursday's trading session, potentially showing signs of exhaustion, and nearing its overall highs.
- A short-term pullback would make sense as it could offer buyers an opportunity to pick up some value.
- Silver has been strong for quite some time, so it's natural for a bit of working off the froth.
The $25 level should serve as significant support, assuming the market doesn't drift any lower. If the market goes up, the $27 level is the next target, but the "measured move" could be as high as $31. The market recently formed a bullish pennant, and it appears to be building up the necessary momentum to move to the upside.
Wealth preservation has become a major factor in trading due to concerns around the world, and the Federal Reserve's potential final interest rate hike could cool off the US dollar. However, the market is very noisy, so caution is necessary when it comes to silver as it is difficult to hang onto in this type of situation. However, silver plays the “second fiddle” to gold, so this market will be much more dangerous as a result. The day has seen a significant selloff in everything, as panic about the banks is starting to sink in. However, in the end, there are buyers.
Be Cautious
If the market were to experience a breakdown below the $24.70 level, it could potentially go down to the 50-Day EMA, which is just a bit above the $24 level. The $24 level is the middle of the previous consolidation region, which could offer potential support if the market were to break down that far. However, it's believed that there is still a strong "buy on the dip" attitude among silver traders.
Ultimately, silver has been trading back and forth and may be showing signs of exhaustion, but a short-term pullback would make sense to offer buyers an opportunity to pick up some value. The $25 level is significant support, and the market may be building up the necessary momentum to move to the upside. Wealth preservation has become a major factor in trading, and the Federal Reserve's potential final interest rate hike could cool off the US dollar. Caution is necessary when it comes to silver due to the noisy market, but it's believed that there is still a strong "buy on the dip" attitude among silver traders.
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