Wednesday’s trading session for silver was positive, as the market continues to exhibit a great deal of erratic activity. It’s worth noting that the $22.50 level has been significant in the past, since a gap has created there. As a result, it does make logical that there may be some support and purchasing in that broad area.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
The 200-day exponential moving average (EMA) and maybe the 50-day EMA might be reached if the $21.80 level is breached. I believe this market will continue to be sustained over the longer term, mostly owing to people’s desire to preserve capital. In the current market situation, I am not as fond of silver as I am of gold, due to the silver market’s negative reaction to industrial demand, which is likely to produce significant problems.
In light of this, I believe there will be a great deal of volatility and probably a little of a range bound situation, but with a strong upward tendency. I enjoy purchasing on dips, but I wouldn’t go “all in” on the silver market due to its extreme volatility.
I have no interest in shorting this market, though, until we fall below the $21 barrier. The way the market has broken out says that we could reach the $25 level, but Monday’s enormous candlestick indicates that it won’t be simple to do so anytime soon. Additionally, it shows that it is likely only a matter of time before we observe the occasional jump in both directions.
