Silver Futures Index $SILVER (SILVER)

[DiscoverGold]

Silver Continues to Rally on Monday
By: Christopher Lewis | May 6, 2024

• The silver market continues to be strong on Monday, as the base that we have recently been building seems to be holding. With this being said, you need to be cautious about getting to aggressive at this point.

Silver Markets Technical Analysis

Silver shot higher during the early hours on Monday as we are slamming into an area of previous consolidation near the $27.30 level. All things being equal, this is a market that I think continues to see a lot of support. And we did of course form two hammers in a row right at the 50 day EMA and the crucial $26 area.

The $26 area previously had been massive resistance and the fact that it was held as support makes a lot of sense. So, the 50 day EMA and the $26 level, both offer a bit of a short-term floor. The question now is whether or not we can continue to see upward momentum. And if we can, then I think we could go looking to the $28.50 level, an area that previously has caused a lot of resistance.

In general, I think this is a situation where you continue to see a lot of noisy behavior, but I do think that the upside is probably going to continue to be a way to trade this market, at least in the short term. Keep in mind though, that silver is not gold and therefore it doesn’t necessarily always behave the same. After all, we’ve got a situation where silver is also an industrial metal, so that comes down to industrial demand questions as well.

Beyond that, silver has been notoriously manipulated from time to time, especially the closer you get to $30, to the downside, so we’ll have to wait and see how that plays out. With this, I think you’ve got a situation where we continue to buy dips, but we also recognize that this is a market that you will have to be somewhat nimble in. But in general, I think in the short term you are looking more positive than anything else.

Read Full Story »»»

DiscoverGold