Technical analysis of silver markets
Silver markets were all over the place during Tuesday’s trading as traders returned to work in the United States. By being as volatile as they are, they show how uncertain the market is right now. Remember that silver is not only a precious metal, it is also an industrial metal. For this reason, there are a lot of cross-currents going on right now which can cause quite a bit of volatility. Frankly, I don’t like silver right now due to the fact that the US dollar is so strong.
The $22 level seems to be a magnet for buyers and sellers, and so I think it’s probably only a matter of time before we see a bit of volatility each time we cross it. It looks like there’s a lot of work to be done on the upside if we’re going to try and break out, and the recent balance, while somewhat impressive when looked at from a longer-term perspective, does default, that is to say the least.
For this reason, I think it is only a matter of time before we sell again, and on the downside I would be looking at a potential drop to the $20 level. However, if we were to break outwards, if we break through the $23 level on the daily close, then I could argue for a more substantial rally. I don’t necessarily think that will be the case, but it is a possibility you should keep in mind.
Silver Price Prediction Video 01.06.22
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This article originally appeared on FX Empire