Silver Markets Give Back Early Gains
Silver markets have gapped ever so slightly higher to kick off the week on Monday, only to turn around and show signs of hesitation by giving back some of the gains. Ultimately, I do think this is a market that will continue to be very noisy, as there are a lot of moving pieces when it comes to global risk appetite and of course geopolitical issues. With that in mind, the market is more than likely going to continue to see a lot of pressure in both directions, but it is worth noting that there is a major downtrend line just above.
SILVER Video 22.02.22
If we can break above that downtrend line, that could kick off fairly significant bullish pressure, sending silver to look at the $25 level, which of course is a psychologically important figure. Breaking above that then has the market testing the significant higher that was made at the $25.50 handle.
On the other hand, if we break down below the lows of the last couple of sessions then it is very likely that silver will go looking towards the 50 day EMA which is closer to the $23.26 level. Any break below there then has silver looking towards the massive support at $22, an area that has been important multiple times in the past and therefore I think it makes a certain amount of sense that we see that area hold up yet again. That being said, we look at the longer-term chart, you can see that we have had “lower highs” for some time, and you could even make an argument for a little bit of a descending triangle. Pay attention to the US Dollar cap Index, it has a massive negative correlation.
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