Technical analysis of the silver markets
The silver market recovered somewhat in the early hours on Thursday, reaching the 50-day EMA but retreating slightly. Keep in mind that while there are many geopolitical risks, traders in that environment tend to lock into gold, not silver. And so the fact that we couldn’t hold on to gains early in the session is probably not a big shock. That said, if we can get above the 50 day EMA, especially on a daily close, then I think silver continues to rally much higher, perhaps back to the $35 level, which has generally been the recent swing high.
This is a market where I believe that even if we collapse from here, the $30 level will remain crucial in terms of support. If we collapse below that, then the 200 day EMA is coming. But really at this point I think you have to look at this through the prism of, do you find value? You don’t necessarily want to chase silver, but on the other hand, if we get some momentum to the upside, it gives you a little bit of confidence in a resumption of what has been a longer term and strong trend. I have no interest in shorting the market. I believe silver will continue to rise just like gold, albeit possibly at a different pace.