Silver markets have dropped a bit during the course of the trading session on Friday as we are sitting on top of the 50 day EMA. The 50 day EMA of course is a fairly common indicator that a lot of people will use for dynamic support and resistance, so it does make sense that we continue to see a lot of noisy behavior in this area, and of course the fact that we are sitting at the $26 level suggests that we have nowhere to be. If we do break down below the 50 day EMA, the market is likely to go down to the 200 day EMA which is sitting at roughly $24.50. Breaking down below their opens up the $24 level, which then opens up a move down to the $22 level.
SILVER Video 03.05.21
On the other hand, if we were to break above the highs of the week, then I think the market is looking towards the $28 level. After that, then we go looking towards the $30 level which has been massive resistance in of course is a large, round, psychologically significant figure. Remember, silver may move a little differently than the gold market and may have an easier way higher due to the fact that it is also an industrial metal, which of course will be in high demand if we do have the reopening trade going forward. That being said, the market has shown no proclivity to take off, so I think we continue to grind between present levels and perhaps the $25 level in the short term.
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