Silver Continues to See Resistance

NEW YORK (January 2) The silver market rallied a bit in the early hours on Thursday as we continue to see some questions asked of the 200-day EMA. It has offered a little bit of resistance after the short-term rally early on Thursday. And of course, we have to ask whether or not there is going to be a significant amount of volume. Most traders are probably waiting until next week to put serious money into the market as the January 6th session will be the first session of a full week. And then of course, you have the jobs report on the 10th on Friday.

So, it is very likely to be a scenario where we are still drifting around a bit. That being said, interest rates are awfully high and that does not bode well for silver, so I’m not a big fan of it right here. The question is, can we recapture the $30 level? If we can break above there, then it could be a very bullish sign.

On the other hand, if we break down below this little area here, right around the $28.75 level, violating what could be a double bottom, then I think the bottom falls out for silver and it goes looking towards $26.50. Next couple of days though, probably going to be very noisy at best, even more so here, as the silver market is so volatile under the best of circumstances.

FXEmpire