Silver markets initially fell during Tuesday’s trading session, but continue to find buyers below the $ 22.65 level. Because of this we ended up forming a bit of a hammer as we run towards the 50 day EMA. The above 50 day EMA flattens near the $ 23.16 level and therefore may offer some near term target and / or resistance. Nonetheless, I think we’ll probably break through and look again towards the $ 23.50 level, which is significant resistance. This is an area that has been visited several times over the past couple of weeks, so it makes sense that we could look towards the area like a magnet.
SILVER Video 05.01.22
If we can break above that then the silver can start to take off again, but obviously it will take significant resistance for that to happen. Ultimately, I think market participants will continue to view this through the prism of a ‘buy-on-dips’ attitude, even though it seems like we are struggling to resume any form of trading. momentum. Nonetheless, I think we have a lot of loud behavior and of course you have to keep in mind that the silver market in the US dollar index tends to have a slightly negative correlation. With that in mind, you need to keep one eye on one graph and the other on the other. That being said, it certainly looks like we’re trying to keep building a base, but I also agree that market participants continue to see this as a loud place.