Silver Forex Signal: Focusing on Same Level

Potential signal:

• I am a buyer of silver above the $33.66 level, with a stop loss at the $32.85 level.
• I’d be aiming for $34.90 above.

The silver market has fallen pretty significantly during the session on Friday, testing the $33 level yet again. The $33 level has been both support and resistance multiple times in the past, so I think you have a situation where traders continue to focus on this as a point of control. The market has broken a little bit below there, but I look at this as a market that has a “pocket of support” between the $33 level and the 50 Day EMA.

Technical Analysis

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Obviously, the $33 level is an area that’s very important to technical trading, but that 50 Day EMA sitting below there opens up the possibility of support. The size of the candlestick is negative, but if we bounce from here, that will just show that there is even more resilience in the than previously perceived. I like the idea of trying to buy silver on dips, as it has been so bullish, and I do think that we continue to see a lot of interest in metals. That being said, they are a little overbought in the short term, and any action we see in the gold market could have a little bit of a “knock on effect” over here.

Keep in mind that the silver market is highly sensitive to the US dollar and is in general typically negatively correlated. It also is an industrial metal that we need to pay close attention to and the idea that the tariffs might slow down trade certainly has a negative impact on silver as well. Despite this, silver has been very bullish, as I think more people have focused on the “precious metals aspect” of this market than anything else. All things being equal, this is a market that has been very bullish for a while, not really showing any hesitation until the last couple of sessions. With this, I think we are simply trying to build up enough inertia to go higher before it is all said and done.

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