Silver Markets Pressuring 200 Day EMA

Silver markets have rallied after initially plunging during the day on Thursday as volatility continues to be the main thing that you can see in these markets. I do believe that the fact that we are stuck between the 50 day EMA and the 200 day EMA is doing nobody any favors, not to mention the fact that some people are using precious metals as a way to hide from geopolitical concerns right now. In other words, Vladimir Putin not only controls what happens with the oil market, but he also controls what happens with gold and silver.

SILVER Video 18.02.22

That being said, I do believe that this is a market that is still technically in a downtrend. If we can take out the 200 day EMA to the upside on a daily close, then you could have a run closer towards the $25 level. However, if we get tensions pulling back, it is very possible that silver could drop $1.00 over the next couple of days. Remember, silver by its very nature is much more volatile than gold. It is because of this that you need to be very cautious trading this market, which is especially true right now with all of the jittery behavior that we continue to see.

In the short term, I would count on sideways choppy action, but it looks as if the buyers are starting to get a little bit more aggressive. Pay attention to the US Dollar cap Index, because if it suddenly spikes, you could see silver get absolutely hammered as a result. This is of course unless it is a massive fear trade, then they both can go up.

For a look at all of today’s economic events, check out our economic calendar.