Silver Markets Technical Analysis
Silver initially fell during the Tuesday session, but then turned around to show signs of life as we continue to find buyers on each and every dip. We are in an uptrend, so this should not be a big surprise, but the volatility seems to be getting worse. After all, we had seen the market just collapse and break down through the $30 level a few trading sessions ago, but now it looks like we are stabilizing a bit, and that is a good sign. The 50-day EMA sits just below, and that, of course, is an indicator that a lot of people pay close attention to.
So ultimately, I do think this is a scenario where traders are trying to get in and find a bit of value. If we can get a daily close above the $30 level, that could open up the next leg higher and perhaps even a move to the $32 level. If you look at the recent action, it’s very similar to action that we had seen back in April where we pulled back rather significantly and then shot straight up in the air. Remember, a lot of traders out there are trying to guess what the Federal Reserve is doing. And as a result, it’s going to cause havoc in precious metals markets, especially in silver, which tends to be even more sensitive than gold to interest rates.