Silver markets initially pulled back slightly during Thursday’s trading session, but then turned to show signs of strength as we hit the 50-day EMA. We even broke the indicator at one point but gave up some of the gains to show a bit of hesitation. For this reason, I think we will continue to see a little bit of fighting, and the market should always be viewed with some suspicion until we break through the $ 24 level.
SILVER Video 15.10.21
It will also be important to pay close attention to the gold market as it begins to show signs of trouble. The market should continue to take inspiration from the gold market as they are moving in tandem right now. Gold has also given up on the initial gains a bit, so the question is, can we continue to see enough momentum for this market to recover? Much of this will also play out in the bond markets and, of course, the US dollar. At this point it seems likely that we will continue to see a lot of volatility and therefore you need to be very careful with the size of your trading position.
If we reverse a breakout below the $ 22.50 level, chances are we could turn to the $ 22 level and then possibly the $ 21.50 level. After that, the bottom falls out of this market. While it has looked pretty solid lately, you can still make a huge argument for a downstream channel.
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