- Silver has been negative during the Thursday session, but you need to keep in mind that Thursday was not a normal session for the futures market as it was Juneteenth in the United States.
- So therefore, liquidity was a major issue. After all, the bulk of volume is done during the U.S. session in futures markets.
- So, this isn’t necessarily a real representation of everything that’s going on. When you look at the market, you can see that we have been bouncing around back and forth, and it looks like we are trying to do everything we can to find our footing.
The $35.48 since level underneath had been previous resistance that has been touched again on the way back down. And now I think that’s your short-term floor.
External Factors in Silver
Silver has a lot of external factors, not the least of which will be the US dollar, which strengthened during the day. So that might have been part of what’s going on. Furthermore, European traders who had some gains may have taken the choice to simply flatten out going on a holiday in America. After all, the futures markets were closed for six hours on Thursday, not just the typical one.
So, with this I think you’re probably looking at a value play on short-term pullbacks, especially as there are lot of concerns out that have people looking to protect their wealth. Silver is one of the ways they do that. If we were to break down below the $35.48 level, then okay, fine, we may drop to the 50-day EMA, but right now, I would say the buyers most certainly have control over the longer term, and therefore you need to keep an eye on any dips and looks at them as suspicious more than anything else.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
