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• Silver has gone back and forth in the early part of the trading session on Tuesday as we continue to see the $37.50 level offer support.
• Silver has been very choppy over the last couple of weeks, and I do think that we are in the midst of trying to form some type of consolidation range.
• Consolidation does make a certain amount of sense, considering that we are in the middle of vacation season, and we also have to keep in mind that the market is probably trying to find another reason to get moving.

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All things being equal, this is a market that I think remains very bullish, and it does have a lot of support just below, but we are also waiting for some type of reason to get excited.

Technical Analysis

The technical analysis for this market is obviously very bullish, with the 50 Day EMA sitting just below the $37.50 level. This is an area that I think offers quite a bit of support, and at this point it’s been very difficult to break below it. In fact, the one time we did, we bounced from the 50 Day EMA anyway. On the upside, we have the $39 level offering a bit of a short-term resistance barrier. If we were to break above there, then the market is likely to go looking at the $40 level. Anything above there would be very bullish, and I think at that point in time you would see the market really take off.

Silver is an industrial metal, not just a precious metal. Because of this, there might be a little bit of cross current at the moment, due to the fact that the global economy seems to be struggling a bit. Furthermore, we are off the fear of tariffs wrecking certain economies, and that could drive down the demand. Regardless, we are in a very bullish phase over the last several months and have just simply been taken a bit of a breather. This makes a certain amount of sense, and with volume dropping in vacation season, it really doesn’t change much. A little bit of patience probably goes a long way here.

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