Silver markets initially pulled back during the course of the trading session on Tuesday but then turned around to break much higher. It looks at this point in time as if the market is likely to go looking towards the upside, perhaps reaching towards the $28 level. After all, the silver market is going to be driven and highly influenced by the reopening trade and of course industrial demand, as silver is an industrial metal.
SILVER Video 05.05.21
Looking at this chart, the 50 day EMA underneath should offer support, as it has over the last couple of weeks, so it certainly looks as if the market is trying to go to the upside. The $28 level has seen a significant amount of selling pressure, where we have pulled back from. If we can break above the $20.10 level, it is likely that the market could go looking towards the $30 level where we had seen a massive barrier. Breaking above that allows several to go much, much higher.
On the other hand, if we pull back in break down below the 50 day EMA, I think at that point the market would more than likely go looking towards the 200 day EMA which is closer to the $24.55 level. All things been equal, this is a market that is in an uptrend for quite a few multiple reasons, and therefore it makes no sense to short this market at all. I think short-term pullbacks will continue to be looked at as potential buying opportunities. The size of the candlestick on Monday is a very bullish sign, and it looks like we will simply continue to go higher based upon that.
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