Silver Continues to See Support

NEW YORK (December 16) Silver bounces early during the trading session on Monday, as it looks like we are going to try to turn the trend right back around to the upside. Underneath, we have a lot of support, especially in the form of the uptrend line and the crucial $30 level. As long as we can stay above the $30 level, I do believe that silver has a shot at going higher over the longer term and in the short term I think we’re going to go look to the 50 day EMA near the $31.10 level.

If we can break above there, then the possibility is that the market could go looking to the $32.35 level, an area that’s been like a brick wall. Short-term pullbacks should continue to be buying opportunities and I think that given enough time, we will continue to go much higher. If we can break above the $32.50 level, then we go looking to the $34.50 level. It’s really not until we break down below the 200 day EMA near the $29.33 level that I begin to worry about the overall trend.

We do have the Federal Reserve interest rate decision on Thursday, so that could be a little bit of an issue as far as volatility is concerned. We are very much still in an uptrend so I would expect more momentum to enter the market sooner or later. For those of you a bit concerned about dabbling in silver, you could also trade the gold market as it tends to be a bit more stable and there are certainly plenty of reasons to get long of it.

FXEmpire