Silver markets edged down during Thursday’s trading session to hit the crucial $ 22 level. This is an area that has attracted attention more than once, so it only makes sense that we continue to see a lot of noise in this general neighborhood. That being said, I think the market is more than likely to find some support extending up to the $ 21.50 level. This is one area that, if it doesn’t hold up, could show a major outage just begging to happen. At this point, I expect the silver market may be heading towards the $ 20 level.
SILVER Video 10.12.21
On the flip side, if we can turn around and pull out the $ 22.50 level, chances are we can get a bit of a rally at this point. This is not necessarily my base scenario, but it is a real possibility. If we break above that level, we’ll probably look to the 50-day EMA.
That being said, you should pay close attention to the US dollar, and of course the US dollar index. The US dollar generally has a negative correlation with the silver market, so pay close attention to the greenback. If it starts to move, the silver market will generally move in the opposite direction. If the US dollar continues to appreciate, it will be absolutely toxic to this market. All else being equal, this is a very poor quality chart, but of course we are sitting at a major support level.
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