Silver Markets Rally to Reach Above $22.50
Silver markets rallied a bit during the trading session on Tuesday as we continue to look at the area underneath as massive support, especially near the $22 level. At this point, the market extends down to the $21.50 level, so think of that as a support zone more than some type of support level. At this point time, the market will continue to find buyers on dips from what I can see, but I do think that the upside is probably somewhat limited in the short term due to all of the noise coming out of the Federal Reserve and the bond market.
SILVER Video 12.01.22
At this point in time, I think every time the market dips there will be people willing to pick up a bit of value, but it does have a negative correlation to the US Dollar Index, so you should keep an eye on the chart. I think we will continue to see a lot of noisy behavior but a run towards the 50 day EMA does make a certain amount of sense. Above there, the $23.50 level offer significant resistance as well.
Whether or not we can break above there is a completely different question, but at this point in time it does make a certain amount of sense that we would see noisy behavior coming into the picture and causing quite a bit of volatility. Because of this, you need to be cautious with your position size but that is essentially what we see in this market most of the time. All things being equal, I am positive, lease for the short term. If we were to break above the $23.50 level, then I might become a little bit more aggressive for a move towards the $25 level.
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