Silver Markets Continue to Pressure Upside
Silver markets have rallied rather significantly during the trading session again on Wednesday as the US dollar has taken a bit of a hit. By doing so, we have tested the 50 day EMA, which of course is a technical indicator that a lot of people will pay close attention to. With that being the case, a little bit of a hesitation could be expected, but if the US dollar continues to fall significantly, then it is likely that silver will be a major beneficiary, and we will see this market continue to climb even higher.
SILVER Video 13.01.22
Just above, the $23.50 level continues to be an area of interest, and an area that I think that will continue to offer quite a bit of selling pressure. If we can break above there, then silver is off to the races and will go much higher.
To the downside, the $22.75 level is short-term support, as it is the bottom of the turnaround that we had seen during the day. Underneath there, the most obvious support level on this chart is the $22 level, which extends down to the $21.50 level as far as a support zone is concerned. Ultimately, I think this is a “buy on the dips” type of market, but you need to keep an eye on the US Dollar Index as it is so crucial in deciding which way silver goes because of the strong negative correlation between the two markets. Ultimately, when I look at this chart I see where you could make a strong argument for a “double bottom”, so I think a lot of traders are looking at that as well.
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