The silver markets were absolutely hammered during the trading session for a loss of almost 5% as the US dollar soared during the trading session. That being said, we’re also below the $ 23 level, which is an area we’ve paid attention to more than once, so it’s interesting that we managed to get through that. This is of course a very negative turn of events, and I think it’s probably only a matter of time before we continue to go down. After all, short term rallies will face a lot of the selling pressure that we just saw.
SILVER Video 09.17.21
The $ 24 level above is important resistance as it has been important more than once. That being said, this large type of candlestick very rarely occurs in a vacuum as retail sales have outperformed in the United States. This suggests that the US dollar may continue to strengthen, so at this point we should go much lower. Frankly, it is only when we cross the level of $ 24 at the daily close that I would consider going long. As the silver market is particularly volatile, the fact that the dollar soars will weigh much more on the market than its cousin gold.
At this point, it wouldn’t surprise me at all to see the silver market heading towards the $ 20 level. This would obviously get a lot of attention from a headline perspective, so I think at that point the market should re-evaluate its overall trend. All other things being equal, I think you are looking for signs of exhaustion on the short term charts to turn short again.
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This article originally appeared on FX Empire