If we can break above the 90 dollars level, silver is likely to really take off to the upside.
Silver
The silver market gapped to kick off the trading session on Tuesday to reach toward the 90 dollars level, which of course is a large round psychologically significant figure, but then fell rather significantly during the course of the trading session. Ultimately, this is a market that has shown quite a bit of resiliency, and I do think that the 90 dollars level will continue to be important.
If we can break above the 90 dollars level, then it opens up the possibility of a move to the next large round psychologically significant figure near the 100 dollars level. This is a market that even if we fall from here, the 50-day EMA underneath offers support at the 80 dollars level. Breaking down below there opens up a move down to the 70 dollars level.
Market Resilience and Support Levels
The market currently is still sitting between the 70 dollars level and 90 dollars level, but it certainly looks like silver is trying to break out to the upside. With that being the case, I am cautiously optimistic, but I also recognize that this is a market that suffered quite a bit of trauma just a few weeks ago.
With that being the case, I think you're going to still have to be very cautious here as there are concerns about whether or not we see another blast like we had that day just out of the blue. Ultimately though, we are still in an uptrend despite the fact that we had that massive move and a little bit of stabilization goes a long way. All things being equal, as long as we can stay in this range and perhaps find buyers on dips, I think eventually the buyers will take control.