Silver Markets Technical Analysis

The silver market rallied initially during the trading session on Thursday, but quite frankly, doesn’t seem like it’s got any staying power. At this point, I think we’re probably going to be a lot of sideways, back and forth trading in this market. The Friday session features the PCE index numbers, and that of course is something that a lot of people in the Federal Reserve look to for direction on inflation. This will have a direct influence on silver as it will have a direct influence on the US dollar. The idea that silver is going to continue to rally based on inflation or

Perhaps just based on trying to get some type of hard assets in your portfolio does make a certain amount of sense but we also have to keep in mind that silver is an industrial metal and because of that a Pretty significant economic slowdown can work against it. It’s a bit of a push and pull effect All things being equal though. It looks like the 50-day ema is going to continue to be a bit of a floor in this market

If we can break above the $30.33 level, then I think we go looking to the $31.50 level. On the downside, I believe that the $28.50 level is a massive support level in the short term. If we were to break down below there, then we could challenge the 200-day EMA, but right now I don’t think we’re quite ready to do so. I think this looks like a market that wants to go sideways in general, as it looks for some type of catalyst.

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