Silver Rallies Again, Finding The Same Barrier

LONDON (February 10) The silver market gapped slightly lower at the start of Monday’s trading session but spent the rest of the session climbing higher. Given this setup, traders are likely viewing the market through the lens of trying to build enough momentum to break above the crucial $32.35 level. An attempt was already made in the early hours, but it appears to have failed. Whether this holds any long-term significance remains to be seen, and you should remember that silver tends to be very noisy at times. Caution is always warranted in this market.

If we get a daily close above this key level, there will likely be increased interest in jumping into the silver market. However, at this moment, the market is in a tricky spot, as participants are closely watching the major resistance barrier. At the same time, traders are also paying attention to the 50-day EMA below, which sits around the $31 level and acts as a short-term support floor. Anything below there starts to have me questioning the overall trend.

If silver does manage to break out to the upside, I suspect it will attempt to reach the $34 level. While I am mildly bullish at the moment, I also recognize that the market is currently sitting right at a significant resistance barrier. If it can break above it, the silver market could be massively bullish, but until then, it looks more like a grind just waiting to happen in this market.

FXEmpire