The silver markets rallied on August 28 as the Federal Reserve continued to make the idea of tightly and monetary policy quite unlikely. Initially, the silver markets dipped to kick off the Friday session but later turned around to show signs of life again. In the end, analysts believe that this market will find its way higher when given enough time.
Investors are buying the short-term pullbacks since it is offering a bit of value for the traders aiming to go long. If there is a break above $20 for the simple moving average momentum, it will likely surge towards $30.
Experts advise that investors should not short silver since the momentum is growing strong and the market might look at the $26 as the potential ‘floor’ in the market. Eventually, the market might head towards $30 as the global economy rebounds.
The Federal Reserve has said during the week that the bar to raising interest rates is quite higher than previously believed. Thus, the market may continue rising in the near and middle-term. After the market breaks above the $30 level, it might aim for the $50 level over the longer term.
At that point, $26 will turn into strong support which will be enhanced at the psychologically important $25 level. $24 underneath that is also support which will make the $24 to $26 zone formidable support.
The 50 days EMA is currently coming into the picture, so it might come into the equation as well. In the end, buying dips continues to work perfectly for the silver market which has plenty of reasons to go higher.