Silver markets went back and forth during the trading session on Tuesday, using the 50 day EMA as a bit of a support level, and if we were to break down below that level, it is likely that the market will go looking towards the $15.00 level underneath, extending down to possibly the $14.80 level. This support level has offered quite a bit of support in the past, and it is likely that the market should continue to respect that. That being said, the market is likely to continue to see a lot of volatility regardless, due to the fact that silver is a precious metal.
SILVER Video 13.05.20
Furthermore though, the industrial demand for silver is going to be exceptionally low in this economic environment so at this point in time it is highly likely that silver will continue to lag gold it to the upside. This is not to say that silver cannot rally over the longer term, just that it probably will not do so as well as gold will. If we can break above the $16.00 level, then just $0.30 above the market will have to argue with the 200 day EMA. If we can break above there, then it becomes a much longer term buying opportunity, which I do think happens eventually. With central banks around the world printing the way they are, it is only a matter of time before “hard money” continues to rally overall. That being said though, there is a lot of work to do and silver is probably something that is going to be difficult to hang onto with large positions.