Silver Markets Reverse Course Drastically
NEW YORK (April 15) Silver has seen a complete reversal during the trading session on Friday, after initially peaking above the $26 level. The $26 level is an area that’s been important multiple times, and therefore is worth paying close attention to. The $26 level was the gateway to breaking out completely, but the weight silver has been completely repudiated says that we are nowhere near getting that massive breakout.
Ultimately, I think this is a situation where the market will continue to be very noisy, but I also think that it will be an issue where you have to pay close attention to the overall risk appetite around the world. After all, silver is definitely a very volatile market, and therefore it needs a lot of risk appetite attached to it in order to become something that people want to own. At the end of the day, I do think that silver probably has quite a bit of interest in it, but from a wealth preservation standpoint more than anything else.
Keep in mind the silver is also an industrial metal, and that could cause major issues. After all, it looks like the global economy is going to slow down, and I think that’s what a lot of people are focusing on during the trading session on Friday, as the economy looks like it’s about to take a bit of a nosedive. This will of course weigh upon the industrial use of silver, which is a big enough component that it is something that needs to be paid close attention to.
Underneath, the $25 level should be supported, as it was a previous resistance barrier and of course has a lot of psychology attached to it as it is a big, round, psychologically significant figure. Underneath there, the $24 level has seen a lot of action recently as well, so I would anticipate that buyers will more likely than not be attracted to that level also. With that being said, the one thing that you can probably count on is volatility which is not a real stretch when it comes to silver anyways as it tends to be volatile under the best of conditions.
FXEmpire
