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Silver Markets Recover After an Initial Dip on Friday

By:
Christopher Lewis
Published: Apr 8, 2022, 15:52 UTC

Silver markets initially pulled back during the trading session on Friday but turned around to show signs of life again.

Silver Markets Recover After an Initial Dip on Friday

In this article:

Silver Markets Technical Analysis

Silver markets have initially fallen during the trading session on Friday but then turned around to form a bit of a hammer. This is a market that looks as if it is ready to go higher, but that does not necessarily mean that it is going to be easy. Ultimately, the market has seen the area between the 50 Day EMA and the 200 Day EMA as support, as it quite often will do. Because of this, the market is likely to try to recover and reach the $25 level, perhaps even the $25.50 level.

If we were to turn around to break down below the bottom of the hammer from last week, that could unleash a wave of selling, as the $24 level is a short-term psychological barrier, which could trigger quite a bit of downward momentum. At this point, the $23 level would be the next target, followed by a move to the $22 level which has been a massive support level.

When you look at this chart, you can see that the pullback has been healthy, and now it looks like we are ready to continue the overall trajectory higher. The occasional pullback could come along, but it will be more likely than not thought of as an opportunity to find a bit of value. The shape of the candlestick does suggest that there are buyers underneath willing to take advantage of value every time it happens, and therefore I think this becomes a “buy on the dips” type of situation. You will more than likely continue to see an inverse correlation between the US dollar and silver as well.

Silver Price Forecast Video 11.04.22

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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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