Thursday’s trading session saw a slight decline in the price of silver due to the continued presence of negative sentiment. Nonetheless, buyers have continued to attempt to stabilize the market. Ultimately, I believe this is a situation where there is a great deal of noise and compression, which usually results in an explosive move sooner or later. I believe it will be only a matter of time until we see significant movement in one direction or the other.
In this regard, there is a great deal of resistance above that we would have to overcome to become positive. The 50-Day Exponential Moving Average is located at $19.32, close to the downtrend line. After that, you must be concerned with the $20 level, and only after a break of all of those levels can you consider a market turnaround and potential bullishness. In addition, the Federal Reserve would need to alter its general stance, as the silver market is extremely sensitive to interest rates and the U.S. currency.
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.
A breach below the $18 level should continue to be supported, since a break below that level would be quite negative. The markets will continue to closely monitor whether or not there will be sufficient industrial demand to drive up prices. Despite this, it is important to note that the market has been trending lower for some time, and it will take a lot to shift this overall sentiment, especially given silver‘s inherent volatility.
