Silver markets have gapped lower to kick off the trading session on Thursday only to turn around and go sideways in general. Ultimately this is a market that looks like it is trying to stay stabilized around the $27 level, perhaps in an attempt to build up enough momentum to go looking towards the $28 level. If we can break above that level, then it is likely that the market goes looking towards the $30 level, which I do think is where we are trying to get to longer term. If we can break above the $30 level, then it is likely that the market goes looking towards the $50 level over the longer term.
SILVER Video 14.05.21
To the downside, the 50 day EMA is curving higher and sitting above the $26 level. All things being equal, the market looks as if it will continue to use this as an area that people will think of as “dynamic support.” Because of this, I think it is only a matter of time before buyers come back into the picture on dips, as silver has quite a bit further to go due to the industrial reopening. Ultimately, this is a market that I think will continue to show upward pressure due to the idea that silver goes into almost everything industrial that has to do with green energy. Ultimately, I think it is going to be very noisy, but it clearly looks like it is a market that should continue to find buyers on these dips. I have no interest whatsoever in shorting silver anytime soon, and quite frankly it would have to break down below the $24 level for me to even consider it.
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This article was originally posted on FX Empire