Silver markets were very noisy in Monday’s trading session as we continue to struggle just below the $ 23 level, an area that has been difficult on several occasions. That being said, the market that returned a large chunk of the gains on Friday suggests there is a lot of selling pressure above it. In addition, you should also be careful that although the sheer number of jobs threw the money market in the air, it sold out just as quickly.
SILVER Video 12.10.21
When you look at this chart, the $ 22 level price is one area that needs to be paid some attention, as it has been favorable on several occasions, despite the fact that we fell just below. A breakdown below the most recent low could open a massive sell signal with the market moving towards the $ 20 level.
On the other hand, the money was supposed to exceed the 50 day EMA, so it is very likely that we could look to the $ 25 level, and of course the 200 day EMA between here and there. . Both of these could offer some resistance, so it is likely that we will see selling pressure there. If we were to break through these two levels, chances are we would see silver pick up for a longer term move. I think there is a lot of volatile behavior to come, and frankly you should pay close attention to the US dollar index because it has a major negative correlation with this market.
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This article originally appeared on FX Empire