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Silver markets have pushed towards the $28 level yet again, and as we have seen more than once, the market has fought any type of break out. Nonetheless, I do think it is only a matter of time before we get that breakout and go looking towards the $30 level.
SILVER Video 18.05.21
In the short term, I anticipate that pullbacks will be thought of as potential buying opportunities as silver is so heavily needed for the reopening trade and of course the “green new deal.” Because of this, I think that silver will continue to be highly sought after, especially as the US dollar has been on its back foot. It should be noted that the dollar picked up a little bit of strength early in trading, so that might be part of the reason why we have seen a little bit of a pullback. Nonetheless, I think there is plenty of support underneath to drive this market to the upside, as the $27 level is very supportive based upon the most recent pullback, and then of course we have the 50 day EMA underneath that has been reliable.
After that, then we are looking at the $26 level as a potential support level as well, so I think there are plenty of reasons underneath for technical traders to be buyers of silver, as it will probably struggle to break down for any significant amount of time. If the US dollar rolls over again, that will only turbocharge the move to the upside. The $30 level will be worth paying attention to, because it is a large, round, psychologically significant figure that once broken has been a sign that silver is going to try to reach as high as the $50 area.
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This article was originally posted on FX Empire