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Silver Markets Reach 200 Day EMA

By:
Christopher Lewis
Published: Jan 19, 2022, 16:39 UTC

Silver markets rip higher during the trading session on Wednesday to reach towards the psychologically and structurally important 200 day EMA.

Silver Markets Reach 200 Day EMA

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Silver markets have rallied significantly during the trading session on Wednesday to reach the 200 day EMA. That being said, the market looks as if it is trying to figure out where it can go next. Ultimately, this is a market that is getting a little bit stretched, but as interest rates fell a bit during the trading session, the US dollar got a little bit of a beating, and that of course helps silver which is so highly sensitive to the US dollar itself.

SILVER Video 20.01.22

Obviously, the 200 day EMA is an area where a lot of people will pay attention to, but it is also worth noting that the overall attitude of the market has been one of consolidation for ages, and we could go as high as $25 and still not break out of it. In fact, that is probably where we are going over the longer term but right now it seems as if we are simply killing time trying to reach the top. Dips should continue to be buying opportunities, lease as long as we can stay above the $23 level at this point.

Silver is very volatile, and obviously we have gotten so stretched that perhaps we probably need to take a look at the market through the prism of “finding value”, and other words buying dips as they occur. The market of course is one that can move at the drop of hat, so your position size ultimately is a major factor in whether or not you can survive silver trading. Either way, it seems as if it is going to be almost impossible to short this market in this current environment.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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