If the market can break above the $27 level, it could really start to take off and go much higher.
- The silver market has shown resilience over the last couple of days, even as it drifted lower.
- However, the market picked back up after the CPI number came out a little lighter than anticipated during the early hours of Wednesday.
- Overall, this is a bullish market and not much has changed, with silver continuing to be a popular option for wealth preservation.
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On the downside, the $25 level is still seen as a major support level, and it is expected that traders will take advantage of any pullback as the potential value in the silver market, given how strong it has been. From a technical analysis standpoint, a pendant has formed, which may guide traders toward a potential move to the $31 level, although this is not expected to happen immediately.
Given enough time, the silver market is likely to attract plenty of value hunters and “FOMO traders”, with any pullback offers an opportunity to find “cheap silver.” The 50-Day EMA is racing towards the $25 level, which is expected to offer plenty of support. As such, the silver market continues to be a “buy on the dip” situation, with value at a premium in a market that has been so strong.
If the market can break above the $27 level, it could really start to take off and go much higher. In the meantime, support candles such as the hammer from Tuesday’s session could present potential buying opportunities. In this scenario, I am looking at the $30 level initially, and then could be looking at a move toward the $50, as we have seen a couple of times in the past. This would almost certainly be due to financial turmoil, as traders would be looking to silver and gold for safety.
Ultimately, the silver market remains a bullish one, with support at the $25 level and the 50-Day EMA offering potential buying opportunities. The market is likely to continue attracting value hunters and “FOMO traders,” and any pullbacks are expected to be seen as opportunities to find cheap silver. As such, the market is likely to remain a “buy on the dip” situation, with any potential break above the $27 level likely to result in a significant move higher. Ultimately, given the strong fundamentals for silver, it is a market that is worth paying close attention to.
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