Silver markets rallied significantly during Thursday’s trading session to regain the $ 22 level, an area that has been significant more than once. At this point, it will be interesting to see whether or not we have enough momentum to keep going up, or will we turn around and disappear? I would have to assume that the bearish momentum is still there so really at this point it is only when we break through the $ 23 level that I think the market starts to rise again.
SILVER Video 01.10.21
For this reason, I think it is only a matter of time before I see some selling pressure, as the US dollar is like a wrecking ball for the silver markets. In addition, we must also be very attentive to industrial demand, and this is of course a major factor. The market has been in a downtrend for some time, so I think it continues to move forward. All things being equal, the market is likely to continue to see a lot of loud behavior, but frankly I don’t think you just have to go out there and start shorting, instead you should see some sort of exhaustive candle on a short futures chart or at the very least a daily close below the $ 22 level to get involved again.
On the other side of the equation, if we get a daily close above $ 23, your next fight will be at the 50-day EMA and then the 200-day EMA which is currently just below the crucial level of $ 25. The question now is whether the support level we broke on the weekly chart will finally give way, or was it a false breakout?
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This article originally appeared on FX Empire