Silver has continued to be very noisy and with the initial pullback we have seen quite a bit of buyers despite the fact that interest rates continue to rise.
With that being the case, the counter-intuitive thing is to see silver rally, but it looks to me like we are trying to reach the $90 level.
The $90 level is a large round psychologically significant figure that I think is the top of an overall range that a lot of people will be watching closely.
Signs of exhaustion I think get sold into. Ultimately, this is a market where I still believe there are some opportunities to go to the upside, but I will prefer to see a little bit of value if we get some type of pullback. The $80 level is an area that I think will end up being supported and I'll be watching that closely, not only due to the fact that it's the $80 level, but it's also just above the 50-day EMA.
Psychological Resistance and Support Levels
If we break down below the 50-day EMA, then it opens up the possibility of a move down to the $70 level. I think that probably is accompanied by stronger interest rates. With this being the case, I think you've got a scenario where you have to be cautious because it has been so bullish as of late. I really think you're asking for trouble up here.
Top Regulated Brokers
That being said, if we do get that pullback, then it might be worth checking into, especially if we start to see rates fall after the silver market pulls back. All things being equal, silver is still a market that I'm bullish of long-term, but I recognize that it will remain a dangerous place to trade and position size being small is not only a good idea, it's probably the most important one.
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