Silver Futures Index $SILVER (SILVER)

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Silver Continues to See Noise
By: Christopher Lewis | September 25, 2023

• The silver market has gone back and forth during the course of the trading session on Monday to show signs of hesitation.

Silver Markets Technical Analysis

Silver has gone back and forth during the trading session on Monday, as it looks like we are not quite ready to go forward. At this point, there are a lot of crosscurrents, as traders are paying close attention to the US dollar and interest rates. Ultimately, this is a situation where the market will have to make its decision rather soon, but the 200-Day EMA underneath should offer significant support if we do get some type of pullback. After all, we have recently bounced from a major floor in the market, and have seen a nice recovery, although it’s been very noisy. Having said that, it’s not overly surprising, considering that there’s so much in the way of indecision out there right now.

On the upside, the most obvious resistance barrier is near the $25.50 level, an area that will continue to be important. If we can break above that, then the market is likely to go looking toward the $26.50 level, but that is something that would take a lot of momentum to get there. All things being equal, I think this is a market that continues to see a lot of noisy behavior, as silver is volatile under the best of conditions, and these aren’t the best of conditions, so it may become even louder in its noise.

Pay close attention to the US dollar, as it has a negative correlation at times, but it is not something that has to be set in stone. Furthermore, you could also take a look at the interest rate situation, because the higher the interest rates, typically that is negative for silver and other metals, although we find ourselves in a very interesting situation at the moment, as traders are just simply trying to find something to retain value, so silver may even be a little bit of a safety play for once. Beyond that, silver is also an industrial metal, so you need to keep that in the back of your mind as well, as it can be a major influence on where silver ends up going as well. The only thing you can do is keep an eye on your position sizing.

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