Silver Markets Struggle With $28

Silver markets have shown signs of exhaustion after initially trying to rally during the trading session on Friday. The $20 level looks as if it is going to continue to be significant resistance.

(May 7, 2021 - Christopher Lewis)

Silver markets have gone back and forth during the course of the trading session on Friday, as the jobs report probably had a lot to do with the volatility. However, by the end of the day we have seen a little bit of volatility, but with the huge miss in the jobs market, the dollar was all over the place. The $28 level looks to be significant resistance, and therefore I think it is going to be difficult to get above there in the short term. A pullback from here probably attract attention oh, especially near the $27 level. This is an area that previously had been important on short-term charts, and I think it will reassert itself soon.

Longer-term, people will continue to focus on the idea of the reopening trade, and that of course has industrial demand for metals like silver growing, right along with copper and aluminum. At this point, I think what we have seen is an impulsive candlestick on Thursday, followed by a very noisy one due to external factors in the form of the Non-Farm Payroll announcement that was so underwhelming.

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

If we can break above the $20 level, then it is likely that we go looking towards the $30 level, an area that has been resistance in the past, and it is of course a large figure that will attract a lot of attention. When you look at the last couple of months, we have been in a bit of an uptrend and channel, but it has been a very choppy affair. That is typically held silver moves, so you need to be cautious about position size and simply add when it starts to work out.