Silver Continues to See Upward Pressure

LONDON (May 27) The silver market continues to see a lot of upward pressure overall, and the Monday session continued to see this play out. However, it was Memorial Day in the USA, and therefore, liquidity was a bit less than usual.

Silver Markets Technical Analysis

Despite the fact that the silver market had to deal with liquidity issues on Monday due to the Memorial Day holiday in the United States, it’s obvious that this is a market that wants to go higher. With this, I am a buyer of short-term dips, and it is worth noting that we have broken above the top of the inverted hammer from the previous session and the $30 level underneath I think continues to offer a bit of a floor. With this, I think the market then goes looking to the $32.50 cents level, which could be a potential target. Short-term pullbacks, I think continue to be very noisy and I do think that a lot of people will be interested in it, but keep in mind silver is a very volatile market.

So, you need to be cautious with your position size simply because when silver does fall, it’s very brutal. If we can break out above the recent highs, then I think we could go look into the $50 level. And the reason I say that is that historically speaking, when we break 30 and sustain it, we get to 50. It’s only happened twice that I could find information on, but that’s kind of what we have to go with.

The US government borrowing money the way it has will continue to drive metals higher. Plus, we have the whole green technology aspect of silver that drives prices higher also. Keep in mind that it is much more volatile than gold. So, you’re not playing gold here, you’re playing silver. And it’s got an industrial component that can cause chaos also. So be cautious, but clearly this is a market that wants to go higher.

FXEmpire