Silver Continues to Find Support Below

LONDON (July 23) The silver market continues to see a lot of support near the $28.50 level, with its “market memory” coming into the picture. This is a market that will remain noisy, but I think there are still plenty of buyers out there willing to get involved.

Silver Markets Technical Analysis

The silver market continues to look at the $28.50 level as massive support as it previously had been significant resistance. The fact that we formed a hammer during the trading session on Monday, and then, it looks like we’re going to try to do something similar on Tuesday, suggests that the market is likely to continue to see a lot of buying pressure based on the idea that the $28.50 level has been, and will continue to be, significantly important. With all of that being said, I do believe silver eventually takes off to the upside and goes looking to the $30 level. We have the 50 day EMA just above and that could cause some issues as far as resistance is concerned.

But really, I think at this point in time, that’s more or less a short-term issue and not something that we necessarily need to be worried about over the longer term. I do think eventually we will blow through there. With that being said, I think you have a situation where traders just simply continue to see a lot of choppy bullishness. But again, the key word here is bullishness. If the US dollar rolls over a bit, that will certainly help silver as well.

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