You can see that we did pull back just a bit only to turn around and show signs of life. The PCE numbers coming out of the United States were essentially where they needed to be, and traders now look at this through the prism of more of the same. And if that’s going to be the case, short-term pullbacks are buying opportunities with the 50-day EMA is an area that I think could cause some issues. And then after that, we could go looking to the 200 day EMA. After that, we then have the $23.50 level as a potential target. Short term pullbacks continue to see the $22 level as potentially important for support. And therefore, I do think there’s a hard floor in this market.
We have been consolidating quite a bit in this general area. And with that being the case, none of this is a huge surprise. I actually got long the day before on a break above the top of that hammer. You can see it worked out quite well. That being said, I do think eventually we could take out 23 and a half. And if we do, then 24 and a half could be a target. Longer term, I believe that we continue to bounce around between $22 on the bottom and $26 on the top. Keep in mind that interest rates will continue to be a major influence on what happens with silver, not to mention industrial demand and basically central bank policy.
