Silver Markets Pull Back to the Previous Area of Importance

Silver Technical Analysis

Silver markets have fallen a bit during the trading session on Friday to reach the $25.50 level. This is an area that has been important a couple of times, so is not a huge surprise to think that buyers came in to pick this market up. It had been previously resistive, and of course, markets are all over the place. The silver market is extraordinarily volatile and fickle, so you need to keep an eye on momentum.

The US dollar tends to have a negative correlation to this market, so pay close attention to what is going on there. If the US dollar strengthens, that can be a problem. However, it is an industrial metal, and therefore if there is industrial demand that could be another reason to go higher. The $26 level above is a resistance barrier, but it is a short-term one. If we can break out above, there that it is likely that we go looking towards the $27 level.

On the other hand, if we were to break down below the $25.50 level, then it is likely that the market goes look towards the $25 level. The $25 level is a round figure that will attract a lot of headline attention, so that could also be an area where buyers come in to try to pick up a bit of value. Ultimately, it will be interesting to see how this plays out, but at this point it still looks as if there are buyers willing to step in.

SILVER Technical Analysis Video 28.03.22

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