Breaking above the $24 level opens up the possibility of a move to the $25.50 level. This of course was a major high that we have had a couple of times in the past, and it is probably worth noting that the “measured move” of the bullish flag suggests that we could very well get there. Furthermore, we also have the 50-Day EMA sitting just below the 200-Day EMA, so I do think that there is a significant chance that short-term pullbacks continue to offer buying opportunities.
In general, I think this is a market that will continue to pay close attention to interest rates, and of course the US dollar. However, what is probably driving the market at this point is the war in the Middle East more than anything else. People are using silver as a way to find a little bit of safety, which is somewhat ironic considering that silver is an extraordinarily volatile market.
However, precious metals do tend to get hoarded in times of uncertainty, and it seems like the silver market is trading more on the precious metal side of the equation rather than the industrial one. Remember, there is a certain amount of noise coming from the demand for silver by industry, which sooner or later will be a factor again, but right now it seems to be all about trying to find some type of wealth preservation vehicle, which people are using silver for. With that in mind, I think you will continue to buy dips.
Source: FXempire
