- Silver rallied quite significantly during the trading session on Thursday, as we broke above the crucial $34 level.
- This is a market that's been very bullish for a while.
- At this juncture, we should also keep in mind that pretty much everybody in the world is panicking in the stock market.
- So that continues to throw money into silver and gold as well. This could very well continue to be the case in these turbulent markets.
Money Continues to Run to Metals
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I think that continues to be the case. We're in a very strong uptrend and I just don't see any reason to think that's suddenly going to change. Short-term pullbacks will be thought of as potential buying opportunities. And if we drop down to the $33 level, I would be very interested in buying in that area. But after today's action on Thursday, I don't know if that happens. I would anticipate a little bit of a pullback, but it is probably only a matter of time before we rally and take out the $35 level.
The reason the $35 level matters so much is that if you look at historical charts, $35 opens up the possibility of a move all the way toward the $50 level. That is a massive move. Silver is extraordinarily volatile, so when it does break out, it tends to be very, very rapid. I have no interest in shorting this market and wouldn't even have that conversation until we break below the 50 day EMA. And even then, I would have to have the right fundamental situation coming into the picture. All things being equal, this is a market that looks like it has plenty of momentum. And anytime it pulls back, you must think of silver as being on sale.
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