Silver Futures Index $SILVER (SILVER)

[DiscoverGold]

Silver Rallies to Kick Off The Week
By: Christopher Lewis | December 26, 2023

• Silver rallied a bit during the trading session on Tuesday, as we continue to see a lot of noisy behavior overall.

Silver Markets Technical Analysis

Silver rallied a bit during the trading session on Tuesday, as it looks like we are going to continue to see pressure to the upside. If we can continue to go higher, perhaps breaking above the $24.75 level, then it opens up the possibility of a move to the $26 level. That being said, we have a lot of work to do before we get there, but it is an area where we have seen noise previously, and therefore I think you have to look at it through the prism of whether or not we can kick off enough momentum.

During the holiday season, a lack of liquidity could cause major issues, but then again it could give us a bit of a boost in momentum as traders will hit air pockets moving the market around. Regardless, this is a market that has been very bullish for some time, so I think anytime we pull back from here, there should be buyers willing to get involved. Those buyers almost certainly recognize the $26 level is a major resistance barrier, and therefore, a lot of people are going to be looking at it.

Underneath, the $24 level opens up a move that could be a bit more of a pullback, and in that environment, we would have to look to the 50-Day EMA as an indicator that a lot of people will be paying close attention to. All things being equal, it’s not till we break down below that indicator that I would look at any pullback as something to think about seriously. In general, this should be a valuable proposition that a lot of people would look at any time we have seen some type of selloff followed by strength.

In general, this is a market that I think continues to look higher, and of course if the US dollar starts to fall apart a bit, that also helps silver as there’s a huge negative correlation between the USD and the silver market. All things being equal, this is a situation where I think a lot of traders will be looking to try to find some type of opportunity to get involved in what is obviously a very strong market.

Read Full Story »»»

DiscoverGold