- The silver market initially pulled back just a bit during the early hours on Tuesday, but the 50 Day EMA has offered enough support to turn things around and show signs of life.
- As the trading session is closing out, we have the $32 level offering a little bit of resistance, but that’s a short term resistance level more than anything else.
- If we can break above there, then the market could go looking to the $32.35 level, and then eventually the $33 level. That is an entire zone of resistance that I think people will be paying close attention to.
Obviously, the 50 Day EMA will continue to be supportive, and I do think that short-term pullbacks will probably attract quite a bit of attention. As long as we can stay above that level, then I think we have a real shot at going higher. Even below there, we have the $31 level offering significant support, and I think that is an area that will continue to be important in both directions, so I do think that will end up being a short-term floor on any type of big pullback.
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Silver isn’t Gold
Keep in mind that silver isn’t gold, and it is highly sensitive to industrial demand. What’s interesting is that it spikes in correlation with gold sometimes, despite the fact that there might be less industrial demand. Tariffs between the Canadians and Americans will continue to be front and center, and this of course has shocked the financial markets. In other words, I think people are basically running for safety at this moment, and that being the case, it’s very likely that silver will get a little bit of a “knock on effect” from the gold market. As gold rises, silver will sometimes follow, and that is most obvious during the trading session on Tuesday, as both have been very strong. I have no interest in shorting silver, despite the fact that there are some nuances here that I would be very careful with.
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