Silver Markets Poised AT 50 Day EMA

Credit: Flickr / Eric Golub / CC-BY 2.0

Silver Markets initially dipped recently towards the $26 level and then bounced back, showing signs of strength again.

The white silver market initially pulled back during the trading session recently to drop back towards the $26 level. However, experts found buyers underneath to turn things around. Plus, it formed a bit of a hammer. The hammer is a bullish sign, and experts trust that the 50-day EMA typically attracts a specific amount of buying. In this context, if the highs from the trading session are broken recently, the market can likely go looking out towards the $28 level initially. Plus, if it can break above the mark, then it is likely to go towards the $30 level. If the $30 level and above are touched, that may open the possibility of moving to the $50 level over the longer term.

The movement has happened a couple of times in the past, and one will likely continue to see some reopening trade play out again. After all, the white silver metal is an industrial metal, and that means that people will be paying close attention to demand as, unlike its yellow precious metal counterpart. Furthermore, higher interest rates will not necessarily work against the value of silver. Experts also believe that eventually, one can look at going much higher, but it will continue to be very noisy in general in the short term. In conclusion, if one sees a drop, it will only be a matter of time before people get a buying opportunity.

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