- Silver has gone back and forth during the trading session on Tuesday as we continue to dance around the 50 Day EMA.
- The 50 Day EMA does attract a lot of attention, and therefore I think it makes a certain amount of sense that traders are just simply hanging around this area and trying to sort out where to go next.
- The $33 level has been significant resistance more than once, and with that being said, I think we have a scenario where traders may continue to push against this level, and if and when we can break above it, that probably ends up being a very bullish sign.
Global Tariff Chaos
Keep in mind that the silver market represents an industrial metal, not just a precious one. Because of this, I think you’ve got a situation where there will be a lot of push/pull in this market, and therefore it makes quite a bit of sense that we would see more volatility, not less. That being said, if the market were to break down below the $32 level, then it’s likely that the market will go looking to the 200 Day EMA, which sits right around the $31.10 region.
Top Regulated Brokers
Keep in mind that silver is highly sensitive to industrial demand, which is being threatened at the moment. However, if the market were to get news of some type of massive trade agreement, then that should, at least in theory, help silver. However, we may also see the US dollar strengthen initially, and that could of course be part of the reason for silver to pull back. Nonetheless, I look at this is a market that you are looking for buying opportunities, not trying to get too cute here and short.
It is not until we break below the $30 level that I think silver is in serious trouble, and quite frankly wouldn’t surprise me at all to see silver try to carve out some type of range here. It does look like it’s a little tired, but it would not surprise me at all to see this market break out to the upside and go looking to the $35 level. The real question at this point in time is whether or not we need to pull back first, or can we just simply take off to the upside?
Ready to trade our daily forex analysis? Here are the best Silver trading platforms to choose from.