Silver markets have gone back and forth during the course of the trading session on Wednesday as we await the FOMC statement, but quite frankly at this point in time it comes down to whether or not we see more demand picking up, because the currency depreciation of the greenback has probably stretched about as far as it will when it comes to driving this market. That being said, I do think that we still have a lot of upward momentum just waiting to happen, so I do like the idea of buying dips.
SILVER Video 17.06.21
The 50 day EMA is an area of significant support from what I can see, and then of course we have significant support in the region of the $26 level. Underneath there, we have the 200 day EMA and the uptrend line both sitting there as well. In other words, I do not really have a scenario which I am looking to short this market, because quite frankly it is such a bullish market and we have formed a bit of an ascending triangle. If we can break above the top of it, which I see as the $30 level, then the market could go much higher, perhaps reaching towards the $50 level. That is based upon historical precedence, which has happened a couple of times previously.
That being said, the market has a lot of work to do before we get that move, but in the short term I think we are simply looking for some type of catalyst to get to the upside. We have a lot of work to get through, but I think the buyers are still very much in control.
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