The silver market saw choppy sideways trade this week after last Friday’s slide lower to 17.505 in the December contract. Despite the Saudi oil attack over the weekend and FOMC meeting on Wednesday the silver market continues to consolidate at this support level. Mixed global equity markets overnight show no real push one way or the other but continued Chinese support of their economy and India’s corporate tax rate reductions could lend some support.
We will also see U.S. Fed speeches today, but a slowing of U.S. economic data reports could curtail any breakout mores. Thursday’s push higher in the stock market added pressure to silver and other metals as it weakens the safe-haven demand of metals. Any escalation of tensions in the middle east or signs of global economic slowdown would give bulls support to push the market off this support. In the December contract a close over 18.10 is needed to continue the trend higher and with momentum levels approaching oversold levels any bullish fundamental news could trigger a short covering rally that would accelerate a move higher.