Silver Markets Weekly Technical Analysis

The silver market has rallied a bit during the course of the week, slamming into the $28.50 level, finding resistance. All things being equal, if we can break above that level, then it’s likely that we can take off to the upside, and I think that’s what the market is trying to hint at. That being said, the other side of the equation is perhaps we go sideways for a while, and that would make a certain amount of sense as well, with the $26.50 level offering massive support.

Market participants are likely to see this as a back and forth sideways type of scenario, but more importantly, it’s worth noting that the 50-week EMA has come into the picture to offer support, and we fell in that so-called golden pocket between the 50% Fibonacci retracement level and the 61.8% Fibonacci retracement level.

Because of this, I think if we do break above the $28.50 level for a sustained move on at least the daily chart, then I think you will see buyers coming back into the market and trying to pick up silver and run to the $31 level with it. A lot of this will come down to the Federal Reserve and whether or not they are going to be cutting rates and as things stand right now, it certainly looks as if they are going to.

Keep in mind that risk appetite has its part to play with the silver market as well, as silver is extraordinarily volatile, so it can be somewhat dangerous to jump in with a huge position. But as things stand right now, it looks like we’re either going sideways or higher.

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