• I can see that silver is still widely supported overall.
• We initially pulled back a bit during the trading session on Monday, but it looks like the 50-Day EMA continues to be a major area of interest.
• Furthermore, we also have the $28.50 level offering support, as it has been important multiple times.
• Because of all of this, I think we’ve got a situation where the market will continue to be very noisy, but I do think that there are plenty of people out there willing to step into the market and buy.

(Click on image to enlarge)

If we do break down below the $28.50 level, then I think the market could go looking to the $27.50 level. That’s an area that has been important multiple times and I think it does make a certain amount of sense that it would offer support. After that, we also have the 200-Day EMA, which is closer to the $27 level. On the upside, I think that the $30 level will probably cause a lot of noise, but quite frankly we have sliced through the couple of times already, so I don’t think it matters as much as it once did.
 

Major Bounce?

It’s worth noting that we had fallen down toward the $26.50 level previously, which was not only an area that had been important multiple times, but it was also in the same neighborhood as the 200-Day EMA. Because of this, and the fact that it was between the 50% Fibonacci retracement level in the 61.8% Fibonacci treatment level, the so-called “golden pocket”, I think a lot of technical traders got involved. Whether or not this bounce last for the longer-term remains to be seen, and I do think that we are probably somewhat susceptible to the short-term pullback from time to time, but it certainly looks as if at this point, you’d have to bet on silver prices rising over the longer term. Look for value, and then trade accordingly as it presents itself.

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