Silver Markets Continue to Attempt Base Building
Silver markets have rallied a bit during the trading session on Tuesday to show signs of life again as the market continues to try and build a base. That being said, the 50 day EMA sits just above and is more than likely going to continue to cause a bit of trouble. Because of this, I think we continue to see a lot of volatility and therefore a lot of choppy behavior. You are more likely better off trading the short-term charts with an eye on that $22 level underneath, as it has been so important for the market.
SILVER Video 02.02.22
The $22 level has offered support in extends all the way down to the $21.50 level. That being said, the market continues to see a lot of upward pressure every time we get anywhere near the $22 level, so I do not necessarily see the market testing the bottom of that range.
You should also pay close attention to the US Dollar cap Index, because it has a huge negative correlation to the silver market, so therefore it cannot be overlooked. Ultimately, this is a market that I think given enough time will have to make up its mind and if we can break above the 50 day EMA, we could very well see this market go looking towards the 200 day EMA above. That is obviously a longer-term call, but it would not be overly surprising considering the behavior that we have seen for markets in the volatility picking up. That being said, if we were to break down below the $21.50 level, it is likely that we could fall apart and go looking towards the $20 level. That would almost certainly be accompanied by a strengthening US dollar.
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