- During my daily analysis of the silver market, it has become obvious that we finally broke above the crucial $31.50 level that I have been talking about, and now are in a major move higher.
- The size of the candlestick is rather impressive, and it now looks like a market that will continue with the longer term uptrend.
- With this being said, the market has broken above the 50 Day EMA as well, and now it looks like we are ready to continue to find the people willing to jump in and chase this trade.
Keep in mind that the silver market is extraordinarily volatile, and therefore you need to be very cautious with the position size, because quite frankly, there are very few things that I can think of that are more dangerous than holding onto a huge silver position. The market participants continue to pay close attention to momentum, but there are some things to think about this week that could have a major influence on what happens with silver next.
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This Week
This week we get the Consumer Price Index numbers coming out the United States, as well as the Producers Price Index numbers. These inflation indicators will have a major influence on metals, and of course we also have to keep in mind that the Swiss, Europeans, and Canadians all have central bank decisions, so that has a major influence on what traders think about risk appetite, and of course economic growth. After all, although silver is considered to be a precious metal, it’s also an industrial metal as well, so with all of that push and pull, we probably will continue to see a lot of volatility.
That being said, I think the uptrend is secure overall, and I think that short-term pullbacks will continue to attract a lot of people into the market. The 50 Day EMA should now offer a certain amount of support, and therefore I think a lot of technical traders will start to pay close attention to this. On the other hand, we could just rip to the upside, and if we do, clearing the $33 level should bring in the next leg of “FOMO trading.”
Ready to trade our daily Forex forecast? Here’s a list of some of the Top Silver Trading Brokers to choose from.