Silver Futures Index $SILVER (SILVER)

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Silver Hangs Around the 50-Week EMA
By: Christopher Lewis | October 20, 2023

• The silver market has been rather volatile over the course of the week yet again as we are hanging around the 50-Week EMA.

Silver Weekly Technical Analysis

Silver has gone back and forth during the course of the trading week, as we are hanging around the 50-Week EMA. Silver of course is very volatile under the best of circumstances, so you need to realize that you have to be very cautious with your position sizing. All things being equal, silver has several different factors that come into play, not the least of which will be interest rates in the United States and the safety trade. While silver is not necessarily the first place traders go to when it comes to a safety trade in comparison to gold, the reality is that silver does carry some of that.

Furthermore, you need to keep in mind that silver is also an industrial metal, so part of the allure of owning silver might be due to the fact that the global economy continues to strengthen. That being said, we are now in the midst of a lot of noise, and silver looks like it is a little overdone. The $24 level above will be a bit of a barrier, just as the $23 level underneath will be supported.

I suspect that we get a little bit of a pullback, but whether or not it breaks down remains to be seen. If we were to break above the $24 level, then it’s likely that silver goes looking to the $25 level. The $25 level of course is an area that will attract a lot of attention due to the fact that it is a large, round, psychologically significant figure and an area that would obviously be widely reported.

Pay attention to the US dollar and pay attention to interest rates in America because if both of those start to rally, it’s very likely that it will work against silver in general.

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