Technical analysis of the silver markets
The silver market initially fell a bit during the early hours on Thursday, but then turned around and bounced back off the trendline. Right now it looks like we are still holding on to the area above the $30 level and of course the 200 day EMA is also just below that uptrend level. And as a result, I think you have a situation where market participants are going to continue to look for value on these dips. If we bounce back from here, and it looks like this is very possible, I suspect the next major barrier will be closer to the 50 day EMA, which is near the $31.20 level.
If we can clear that up, silver could go higher, perhaps as high as $35. On the other hand, if we turn around and fall below the 200-day EMA, it’s possible we’ll really start to fall apart. That said, I think you have a situation where we have to at least, I think, look at this through the prism of a scenario where you’re just looking at this as an attempt to build something. some basics and try to build up enough confidence to turn around and go higher. That said, you can expect volatility and you should be very careful about the size of your positions. But ultimately, I think we’re in an area where you might find some value.