Continues to Hesitate its Run Higher on Tue

Silver continues to be a difficult market to trade, but eventually, we will get a pullback that we can buy into. 

• The silver market has been highly volatile lately, with a lot of noisy trading. The market is highly sensitive to both risk appetite and industrial demand.
• Industrial demand is likely to be negative at this point, as the global markets are starting to slow down.
• The $23 level underneath should offer some support, as it is a large, round, psychologically significant figure that has been imported previously.
• However, the $23.50 level above has been significantly resistive, and it is the point at which we started to sell off quite drastically during the previous bear market.

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Furthermore, there is a lot of noise all the way up to the $24.75 level, and the $25 level will be psychologically important. Most times the market has broken above the $25 level, it has led to a huge move to the upside. The 50-Day EMA presently sits at the $22.21 level and is rising. That will be dynamic support for most traders, so it might be the target if we break down from here. Breaking down below that opens up the possibility of a move down to the 200-Day EMA, which is just below the $22 level.

If the market breaks to the upside, it is likely to be a slow slog higher. Silver continues to be a difficult market to trade, but eventually, we will get a pullback that we can buy into. It is difficult to chase it all the way up here, as we have made such progress in such a short amount of time. The volatility is likely to get worse, not better, and that typically works against the bullish pressure.

Therefore, it is essential to keep your position size reasonable because this market is about to get very noisy. Protecting your account is going to be the biggest job in the silver market, as the losses can pile up quickly if you are not careful.

Ultimately, the silver market has been highly volatile lately, and there is a lot of noise in the market. The $23 level underneath should offer some support, but the $23.50 level above has been significantly resistive. The market is highly sensitive to both risk appetite and industrial demand, which is likely to be negative at this point. The 50-Day EMA presently sits at the $22.21 level and is rising, which will be dynamic support for most traders. However, it is essential to keep your position size reasonable and protect your account because the market is likely to get very noisy. Ultimately, traders should be cautious when investing in the silver market and be aware of the current situation to make informed decisions.

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