Technical analysis of silver markets
Silver continues to be very volatile, so it makes sense that we continue to hold around the $22 level. The $22 level is an area that a lot of people will be paying close attention to, as it has been prominent on several occasions. We look to the left on the chart, you can see how big that was for support, and now there should be some amount of market memory attached to it.
For this reason, I anticipate there are both buyers and sellers involved, as there is a lot of order flow there. If we can break above the $23 level, that would be extremely bullish for the silver market, allowing it to reach the 200-day EMA, possibly even the longer-term $26 level.
On the other hand, if we break below the $21.50 level on the daily close, it will almost certainly open up further selling in the silver market, possibly sending it back down again. Eventually, we could very well see silver attempting to reach the $20 level. Anything below that would be disastrous for the money.
Pay attention to the US dollar index, as it has a negative correlation with this market, and therefore the US dollar starts to take off higher, which will most likely work against the value of money, so you can use as a secondary indicator. Either way, I still believe that short-term rallies are gone until proven otherwise in this market.
Silver Price Prediction Video 09.06.22
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This article originally appeared on FX Empire