Jun 17, 2022 11:33
The silver market has opened higher on Thursday, despite the fact that the markets as a whole remain quite volatile. Silver is unpredictable under the best of situations, so it does make a lot of sense that this market finds itself trying to rise to the $22 level again. The $22 level is an area that has been like a magnet for pricing, so it would not surprise me at all to see a bit of hesitancy. In the event that we break above that level, the market will have to contend with the 50-day exponential moving average (EMA).
All else being equal, this is a market that continues to find quite a deal of downward pressure, especially since we have just created a significant “H pattern.” If we were to break over the 50 Day EMA, then it may open up a greater move, and breaking above the $23 mark might flip the whole thing around. That said, the bond market and the US dollar will almost certainly have a significant impact on the market. Keep an eye on the US Dollar Index, which has a strong negative association with silver most of the time.
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On the downside, the market falling down below the $20.50 level opens up fresh selling, and potentially an effort to move down to the $20 level. If the price of silver breaks through that level, it will throw the market into a tailspin as major selling pressure is released. At this time, I feel that it is more likely than not going to be a “fade the rallies” sort of marketplace.
Jun 16, 2022 11:29