Silver markets have gone back and forth during the course of the trading session on Friday, as the jobs report probably had a lot to do with the volatility. However, by the end of the day we have seen a little bit of volatility, but with the huge miss in the jobs market, the dollar was all over the place. The $28 level looks to be significant resistance, and therefore I think it is going to be difficult to get above there in the short term. A pullback from here probably attract attention oh, especially near the $27 level. This is an area that previously had been important on short-term charts, and I think it will reassert itself soon.
SILVER Video 10.05.21
Longer-term, people will continue to focus on the idea of the reopening trade, and that of course has industrial demand for metals like silver growing, right along with copper and aluminum. At this point, I think what we have seen is an impulsive candlestick on Thursday, followed by a very noisy one due to external factors in the form of the Non-Farm Payroll announcement that was so underwhelming.
If we can break above the $20 level, then it is likely that we go looking towards the $30 level, an area that has been resistance in the past, and it is of course a large figure that will attract a lot of attention. When you look at the last couple of months, we have been in a bit of an uptrend and channel, but it has been a very choppy affair. That is typically held silver moves, so you need to be cautious about position size and simply add when it starts to work out.
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This article was originally posted on FX Empire