Silver Markets Weekly Technical Analysis

Silver has rallied rather significantly to reach the $30 level during the course of the week before pulling back. Quite frankly, this is a market that is reacting to the speech at Jackson Hole, where Jerome Powell suggested that perhaps it’s about time to change monetary policy.

So, the question now is will there be demand? After all, silver is an industrial metal, and a lot of people will look at it through that prism. Short-term pullbacks are probably going to end up being buying opportunities with the $28.50 level underneath the offering support. If we can break above the crucial $30 level, I think that comes into the picture as well and a lot of traders will look at that as a potential breakout and FOMO trade. That being said, it should be noted that we already kind of knew that Powell was going to say that.

So, whether or not it changes the overall longer term outlook is a completely different question altogether. And really the one thing that you see very plainly on this chart is that it’s a market that has been extraordinarily bullish over the long term. And I think you’ve got a scenario where traders are going to continue to look at this through the prism of whether or not we can take risk or is the economy really struggling? If that’s the case, then we’ve got even more volatile days ahead. And unfortunately, that’s probably the reality.

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