Technical analysis of the silver markets
Silver rallied slightly in the early hours of Wednesday as we continue to see upward pressure, but I think at this point the market is likely to try to break above $30, which is obviously a big, round, psychologically significant number in an area that caused some problems on Tuesday. This is a market that has been very up over the last week or so, and I think we’ve gotten so far ahead at this point that a little bit of a pullback I don’t think would be a huge surprise and I don’t necessarily think it would be unhealthy. At this point we would have to look at this market through the prism of potentially offering value.
Ultimately, this is a scenario where if we get above $30, we could be looking at the $31.50 level, possibly even the $32 level. If we pull back from here, I would be watching the 50-day EMA, as that is obviously an indicator that a lot of people are watching anyway. And after that, the supply and support at $28.50. I have no interest in shorting silver, although I don’t necessarily want to chase silver all the way up in this extended range, at least not in the short term. All other things being equal, this is a market where I think there will continue to be a lot of value hunting when and if that opportunity presents itself, as it has for some time.
