Technical analysis of the silver markets
Silver rose a bit in the early hours on Friday, but again we see some resistance at the 50-day EMA. If we can break above that, the market will likely look towards the $33 level over time. Short-term pullbacks remain an important factor in this market in my view, but I also recognize that the $30 level is likely to become a major bottom in the market at this point. This is an area that has proven to be important on more than one occasion, and of course there will be many options traders operating in this area at the same time.
That said, I think you have a situation where you want to buy short-term dips, but I think given enough time, we’ll probably see a little bit of momentum in this market. Perhaps with the $32 breakout, there will likely be people chasing the FOMO trade. If we were to break below the $30 level, it is possible that the 200-day EMA, somewhere around $29.25, could come into view for a bottom.