Silver markets have rallied going into the weekend, aiming towards the 50 day EMA. Ultimately, this is a market that is going to react to the US dollar and of course the overall risk appetite around the world as silver is also an industrial metal, not just a precious one. Because of this, I like the idea of buying short-term dips and have for a while. However, we are essentially in the middle of a larger consolidation area, so I am in no huge rush to build up a massive position.
SILVER Video 23.11.20
To the downside, the $22.75 level is a significant support level, as it not only has been tested a couple of times previously, but also has the 38.2% Fibonacci retracement level sitting there. Ultimately, this is a market that we should see buyers on dips, especially as the 200 day EMA starts to race towards that area. All things being equal, the market should eventually go looking towards the $26 level, possibly even further.
The silver market of course is one that I do like longer term, so I believe that short-term pullbacks will continue to offer opportunities to put a little bit of money to work, but I have been building this position up over the longer term, not necessarily jumping “all in” right away. The silver markets are extraordinarily volatile and dangerous at times, so keep in mind that the market will continue to see value hunters going forward, and at this juncture I have no interest in shorting this market. I believe this is more of an investment than anything else.
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