Technical analysis of silver markets
Silver was choppy in Tuesday’s trading as we try to determine whether the market will continue to slide or recover. The $19.50 level is an area that many people will be paying close attention to, with a potential target of $20 next. That being said, we are still in a downtrend, and for good reason. Nothing has changed from a broader perspective, as people are concerned about global growth and, of course, the resulting demand for money.
Keep in mind that although most traders learn that silver is a precious metal, the reality is that it is much more common to use it for industrial purposes, so a downturn in the economy would certainly a negative effect on the idea of demand, and therefore the price. I think at this point it’s likely we’ll see some signs of burnout.
The 50-day EMA sits at the $20.91 level and is now looking to offer a significant amount of momentum resistance, so it is important to pay close attention to this area. All things being equal, I believe signs of exhaustion will continue to be downside trading opportunities. This is particularly interesting due to the fact that the overall attitude of the markets has been negative for some time, and the technical analysis also suggests that they should continue. If we were to break below the $18 level, it could open up the possibility of a move to the $15 level.
Silver Price Prediction Video for 20.07.22
For an overview of all of today’s economic events, check out our economic calendar.