Silver Continues to See Resistance Just Above

NEW YORK (May 14) The silver market has been stymied by the $28.50 level, an area that a lot of people have seen as a ceiling in general. Above there, we have a lot of noise all the way to the $30 level.

Silver Markets Technical Analysis

Silver rallied a little bit during the early hours on Tuesday, but the $28.50 level continues to see a lot of selling pressure. This is an area that we’ve seen as important multiple times in the past. And therefore, I think we’ve got a situation where if we were to break above there, then the $30 level above is the top of this overall range of selling pressure. Short term pullbacks offer a buying opportunity from what I can see. And essentially as a result, I’m simply in a holding pattern. I recognize that the 50 day EMA underneath offers plenty of support right along with the $26 level, which I would love to see this market pullback toward.

Whether or not that happens remains to be seen, but I certainly don’t want to chase at the top of the overall consolidation range and certainly don’t want to try to buy all the way up here and buy directly into the phase of massive resistance. I need to find the value in silver and silver does tend to be a lot more volatile than gold.

In fact, most retail traders make the huge mistake of thinking they are the same thing they really aren’t. Silver is not being bought by central banks. Silver is an industrial battle. Yes, it is a way to preserve wealth but ultimately, I think you’ve got a situation where the market is likely to continue to see a lot of buy-on-the-dip behavior and that’s what I’m going to do. I’m just simply going to follow the market.

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