Silver markets have initially fallen during the trading session on Friday to reach down towards the 50 day EMA. The 50 day EMA of course is widely followed by technical analysts, so it should not be a huge surprise that caused a bit of reaction. At this juncture, it looks like the $28 level is going to continue to be significant resistance, so if we can break above there it opens up a move towards the $30 level. I do not necessarily think that it is going to be the easiest thing in the world to do, but I do think it happens given enough time.
Pullbacks at this point should continue to be opportunities to buy silver, as there is a lot of bullish pressure due to the reflation trade that everybody is starting to pile into. Obviously, silver will have more uses as we continue to see the stimulus ripple through the economy as there has been a lot of pent-up demand when it comes to industrial uses.
Ultimately, this is a market that I think will go looking towards the $30 level above, and if we can break above there, then it is very possible we go looking towards the $50 level as we have more than once. That being said, in the short term I like the idea of buying dips as they offer value. The $24 level underneath should be supportive, as the 200 day EMA is reaching just below there. I expect silver to be very noisy and messy, but at the end of the day I do think that it has more bullish attitude ahead of it than anything else.