The silver market fell pretty significantly right off the bat on Monday, but has turned around as we bounced basically from the 200-day EMA. The question now will be whether or not we are actually seeing some type of an attempt to turn things around, or are we just simply going back and forth trying to get a read on whether or not market participants are going to continue to be bearish like they were during the Friday session after Kevin Warsh basically stated that the Federal Reserve very well could end up hiking in the future, certainly aren’t cutting. That really rocked the markets and sent interest rates in America higher, and silver does tend to be sensitive to interest rates. We’ll just have to wait and see how it plays out.
Technical Levels and Market Drivers
Bouncing from the 200-day EMA will give solace to technical traders, and therefore it’s probably worth watching this area. But as things stand right now, this is a market that is at a major point of inflection, the $70 region. And if we can get back above there, I would suggest that perhaps that’s very positive. Breaking the top of the Friday candlestick most certainly would attract a lot of attention from traders, and more likely than not be willing to perhaps step on the gas, a little bit of FOMO trading at that point.
