Silver Continues to See Support

NEW YORK (September 10) Silver has rallied just a little bit during the trading session here in the early hours of Wednesday as we continue to bounce around in what I think is going to end up being a bullish flag. It’s a little early to call it that, but at the very least, it does look like it’s going to be consolidation right around the crucial $42 level. Ultimately, even if we do fall from here, I think it ends up being a buying opportunity all the way down to at least the $40 level. We’re at the top of the channel, so this makes a certain amount of sense as well, but ultimately, this is a market that I think, given enough time, will try to break much higher, especially if central banks around the world continue to cut rates in general.

The Federal Reserve, of course, will have a major influence on that. And with that being said, I think ultimately the trajectory is higher. It’s just a matter of whether or not we get a pullback and the ability to buy cheap silver between here and there. In fact, the 50-day EMA is hanging right around the bottom of the channel, offering even more support.

So, it’s really not until we break through all of that, I would consider shorting silver, which really at this point in time, I think would be very dangerous to do. With that being the case, I am very interested in buying dips but recognize we may break out first and just have to hold our nose and buy it at higher levels.

FXEmpire