Silver Bounces From 50 Day EMA

Silver Markets Technical Analysis

Silver markets have initially dipped during the day on Tuesday only to turn around and show signs of life as we have broken above the $25 level in the front contract. At this point, the market is likely to attempt to break above the $25.25 level and go looking to get to the $25.50 level. The size of the candlestick is rather impressive, but you need to pay close attention to the US Dollar Index, as it has a strong negative correlation over the longer term.

What I would pay attention to is the fact that we are forming a bit of a falling wedge, so that is potentially a bullish sign as well. However, if we were to turn around a break down below the massive hammer from last week, extensively wiping out the $24 level, then silver would be in big trouble. It certainly looks as if we are trying to recover during the day on Tuesday, and that the uptrend should continue. For what it is worth, the gold markets have also taken off during the day, and that often will have a bit of a knock-on effect over here as well.

At this point, there are a lot of concerns about inflation, so it looks as if the metals markets are doing everything they can to rally and go much higher. That being said, this is a market that is also very volatile, so you need to keep that in your mind as well. The market will continue to be very choppy over the next several days, but it certainly looks as if the buyers have stepped in to take control again.

Silver Price Forecast Video 06.04.22

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