Technical analysis of the silver markets
The silver market initially pulled back a bit in the early hours of Tuesday, but turned around and showed signs of life again. In doing so, it appears that the $32.50 level continues to provide significant support. And at this point, I think you have a scenario where traders could very well continue to push silver higher, based primarily on the idea of the US election. Don’t get me wrong: I don’t think it will be an easy move, but the reality is that neither candidate will do anything to slow down spending. It just depends on what they spend all the money on.
So with this, I think silver will continue to rise and perhaps reach the $35 level. On a short-term pullback, we could see a move towards the 50-day EMA, which is near the $31.50 level, but ultimately I think you have a situation where value hunters will continue to view dips as buying opportunities. And of course, silver will get a slight edge from the gold market, as gold and silver tend to move in the same direction over the longer term, although they can sometimes diverge. If we break below the 50 day EMA, it is possible we could drop to the $31 level, but right now, the lower we go, the more interested I am in buying silver.