- Silver has rallied a bit during the early hours here on Friday as we continue to see a lot of support at the top of the previous bullish flag that we broke out of. So, it looks like we see a lot of market memory coming into the picture that was previous resistance and now in support.
- If we are rallying at this point in time, and it looks like we will try to the $43.35 level could be targeted in the short term with the flag here, offering quite a bit of support all the way down to about $41.
- Even if we break down below there, if we were to show selling pressure, we might test the $40 level, which was a previous swing high with the 50 day EMA coming into the picture offering support as well. Ultimately, if we break out to the upside, then we might fulfill the flagpole here right around $46.
Upward Push Likely to Continue
Ultimately, this is a market that I think continues to see a lot of upward push. And really, at this point, if we see the US dollar calm down a bit, that probably will drive silver to the upside. Industrial use, of course, is definitely a factor here and there is a lack of silver around the world. So, there is a little bit of an underlying bid in every once in a while, you hear somebody talk about the green technologies out there like solar needs so much silver. So really at this point in time, just looking at the chart tells you everything you need to know. Yes, we pulled back after the FOMC meeting, but we've already made an attempt to break out above the top of that candlestick. And if and when we do, I think that it brings in more FOMO and people start jumping in.
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