Technical analysis of the silver markets
Silver fell a bit during the trading session on Friday and as you can see it looks like we are trying to reach a support level. The support level is near the $30 level and of course the uptrend line, but at this point I think you have to assume that the market has to move before you put money at risk. After all, silver can sometimes be an extremely dangerous market to invest in and of course position size is crucial. So we are approaching a turning point, but at this point I see no reason to be a buyer.
I certainly wouldn’t be a seller of this market, at least not until we get below the 200 day EMA, which is below that. If we can fall and then bounce, then at least you have a place to say it’s time to get out when the market turns around and falls. In that environment we could go back to the $32.35 level, but with the US dollar behaving like this, silver is going to struggle, at least in this environment. Industrial demand could weaken and if it does, that’s the real blow against silver, but I do see a lot of support just below that. So I’m not prepared to be brief here. It remains to be seen what the market will actually do with this region.