Summary
I’m watching silver closely as it surges toward $50, testing a heavy resistance zone up to $51.50. Whether silver can break higher or faces exhaustion here will likely determine its trend for the coming months.
Silver
This is Chris from the TraderGuy.com taking a look at the silver market. Silver has erupted early on Monday to reach the $50 level and is now in the process of breaking above here. This is an area that I’ll be watching very closely because, quite frankly, I think there is a massive supply area between $50 and $51.50 roughly.
And if that’s the case, then I also believe that we are on the verge of finding out whether or not silver is the real deal. We had recently seen a shot straight up in the air and then a ton of volume that led to distribution. It’s not uncommon to see another attempt to get back up there and then a failure. So it’s because of this, I’m a little bit cautious here.
We will have our answer fairly soon because, honestly, if we break $51.50, we’re probably going much, much higher. If we get an exhaustion candle, that could be the first sign that the trend is truly starting to turn over. I’m not a huge proponent of silver typically, although momentum does definitely work in its favor at times. It’s an extremely volatile and wild market. So typically, once it gets an idea in its head, it’ll follow through. Again though, the question is, will we be able to break through this block of selling pressure? I don’t know, it’s a little early. We’re definitely making that move though. We’re going to have to see whether or not they can actually accomplish it. The next day or two, I think, will probably tell the story for the next couple of months when it comes to silver.