Silver markets initially pulled back during Friday’s trading session to hit the 50-day EMA, which flattened out. However, the market is likely to see a lot of noise in this general neighborhood as we are stuck between the 50 day EMA and the 200 day EMA. Having said that, the market will continue to be very loud, but if we can break through that 200 day EMA at the $ 24.51 level, then I think the market will likely challenge the $ 25 level above. The $ 25 level above is a large, round, and psychologically significant number, but it would also form a bit of an inverted head and shoulders.
SILVER Video 08.11.21
At this point, it will be interesting to see what happens with the US dollar index, as it tends to have a slightly negative correlation with this market. If we fall below the 50 day EMA we are likely to look towards the $ 23 level, but at this point it looks like the market is trying to move up, perhaps boosted by the number of ‘jobs so strong, because it suggests that industrial demand for silver is expected to pick up. At this point, I hope you understand that silver is a very volatile contract and therefore you need to be careful with the size of your position. Nonetheless, I totally agree to add as we go higher. The $ 22 level below has been significant audible moments on longer-term footage, so it’s not a huge surprise that we’ve bounced back from there.