Technical analysis of silver markets
Silver markets rallied significantly to kick off Thursday’s trading session, hitting the crucial $22 level. This is an area that was previously supportive, but now appears to be resilient. A pullback from this zone would make perfect sense, especially if the US dollar starts to strengthen again. Remember that silver is particularly sensitive to the US dollar, so you should keep in mind what the US dollar index is doing whenever you trade in this market.
On the upside, even if we cross the $22 threshold, I don’t find it very pleasant to acquire silver. If I were to be a bull on precious metals right now, it would be gold because it offers more inflation protection. Remember, silver has a large industrial and commercial component, so if we do enter a major downturn, it’s hard to imagine a scenario where silver will do well in the long run. With that in mind, I think we will continue to see sellers whenever it rallies a little too much, taking advantage of what is usually a very volatile market to begin with.
If we break out higher, only when we break through the $23 level can I take any rally seriously. At this point, I would also need to see the US Dollar fall across the board, which doesn’t seem likely to happen for a sustained amount of time. With that, I’m looking for signs of exhaustion on the short-term charts.
Silver Price Prediction Video 20.05.22
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This article originally appeared on FX Empire