Market Overview
The silver market has shown bullish momentum recently, with prices rallying in the early hours of trading. The key resistance level to watch is $80 per ounce, a significant psychological barrier that traders are closely monitoring.
Current Price Action
As of now, silver is testing the $80 level, which has become a focal point for traders. A year ago, the idea of silver reaching this price would have seemed far-fetched, but the market dynamics have shifted dramatically. Short-term pullbacks in price are viewed as buying opportunities, especially as long as prices remain above the $70 mark, which is also a critical psychological level.
Future Projections
Analysts believe that if silver can break above the $80 resistance, it could quickly move towards $84. The current bullish sentiment in the market suggests that shorting silver is not advisable, as the market is expected to continue its upward trajectory. However, traders are cautioned about potential corrections, which could be severe, as evidenced by recent volatility that has impacted retail traders significantly.
Trading Strategy
Active traders are encouraged to look for value opportunities in the market while being mindful of leverage, as the current environment is characterized by choppy price movements. The importance of risk management cannot be overstated, especially in light of the recent $10 price swings that have caught many off guard.