Silver Markets Technical Analysis

The silver market has gone back and forth during the trading session on Monday in the early hours as we continue to see a little bit of hesitation in general, that does make a certain amount of sense considering that we have seen a pretty significant sell off, but then saw a fairly strong bounce from the 50 day EMA.

Speaking of the 50 day EMA, I believe it continues to offer significant support right around the $30.20 level. Just as the $32.50 level above makes a bit of a resistance barrier. As long as we can stay above the $30 level, I think you’re probably going to see the market try to chip away at significant resistance above and then eventually break out. This would of course be a great sign, and that could send silver much higher.

If we get a daily close above that crucial $32.50 level, then I do think that silver continues to go much higher, which would make a certain amount of sense considering that the bond market is telling us that inflation is probably going to pick back up. And with this, I think we’ve got a situation where traders will continue to see a lot of noise and therefore, I think you will also continue to see more value hunting than anything else, as the markets continue to see plenty of reasons to go higher over the longer-term. The market has been noisy, but positive for some time now, as we continue to see positive momentum from a longer-term perspective.

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