Silver Continues to Roar

NEW YORK (November 10) Silver has rallied rather significantly in early pre-market trading on Monday as the $50 level is now being tested. At this point, things are very interesting, and I am watching this very closely because I do think you’ve got a situation where $50 could tell the tale. If we fail here, I think that means the market has possibly peaked.

I don’t know for a fact, but it is worth noting that the volume has picked up a little bit so far. We’ll have to wait and see. But again, failure here would be very interesting to me. If we break down below the 50-day EMA—something that I don’t think happens in a single session—that obviously would be very negative. We have rallied quite nicely over the last several months, only to pull back and then go sideways. Now that we’re going sideways and starting to see some momentum.

This is a classic continuation pattern, but again, I think this area, right around $50, is going to be crucial. There’s a lot of psychology, and I suspect options trading, in this area that will have to be dealt with. So, with that being said, we are on the edge of our seats waiting to see what happens next. I don’t know if I would just jump in here because, quite frankly, if we blow through $50 and continue to go higher, we probably have much higher to go. On the other hand, if we turn around and start selling off, that shows that this area is going to be defended quite handily.

FXEmpire