Silver continues to be very noisy at the moment, as the interest rate markets continue to see a lot of volatility.
Silver
Silver continues to be very noisy on Friday as we are hanging around the $70 level. The $70 level is a large, round, psychologically significant figure that a lot of people will be watching closely and therefore I think it makes sense that we will continue to see choppiness.
The interest rate market in the United States continue to rise and the market is going to continue to pay close attention to that and if we start to see interest rates fall meaningful amounts in the United States that does help the silver market bounce a bit.
Resistance Barriers and Market Exhaustion
I think the $75 level is a bit of a barrier but even if we break above there the $80 level has much more resistance right along with the 50-day EMA. Despite the fact that it looks pretty good on Friday I think that silver is still such a situation where you are looking for signs of exhaustion on rallies to perhaps sell unless something changes quite drastically.
If the market were to fall from here, then the 200-day EMA could be targeted. If we break down below there then the market goes looking to the $60 level.
If we get some type of good news out of the Middle East conflict then we could see rates drop and that might be what helps silver but right now we're just bouncing around a big figure and I think we are going to continue to see a lot of choppiness, a lot of daily wild swings and therefore you need to keep in mind that the only thing you can truly keep control of will be your position size.