Silver markets edged down during Tuesday’s trading session to hit the $ 22 level again, an area that has been strong support more than once. Bouncing back like we did, that’s a somewhat positive sign, but it also looks like we’re working hard to get down to that level in the long run, and we’re more than likely going to break through that. Remember that the silver market will continue to struggle as long as the US dollar strengthens, so you should pay close attention to the US dollar index. As the dollar goes up, money collapses quite quickly in most circumstances.
SILVER Video 29.09.21
The $ 23 level above is significant resistance, so it will take some momentum to turn the tide and get the silver off the ground. The 50 day EMA would be the next target, but frankly it’s very hard to get excited about owning money right now as yields in America tend to go up which of course. works against the value of precious metals in general.
Silver markets are much more sensitive than gold, so it makes sense for silver to fall below the $ 22 level eventually. Once it does, I think the bottom of this market will likely collapse, possibly sending the market to the $ 20 level. Expect a lot of boisterous volatility, but I’m still on the lookout for short-term selling opportunities along the way, fading rallies showing signs of exhaustion on the shorter-term charts. Keep an eye on your position size, but if we go below the $ 22 level, we’ll be aggressive.
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This article originally appeared on FX Empire