Silver Markets Stall After Bullish Run

Silver markets have gone back and forth during the course of the trading session on Thursday as the market continues to hang about the 50 day EMA. Quite frankly, the market had gotten so overdone in the last couple of days a little bit of hesitation makes quite a bit of sense. Ultimately, this is a market that will probably continue to see a lot of noisy behavior, but at the end of the day it is going to come down to one thing: the US dollar.

SILVER Video 14.01.22

Just above, the $23.50 level offers significant resistance, and therefore I think it is worth paying close attention to. If we can break above that level, then it is likely that the silver market will be bought significantly, bring in the market towards the 200 day EMA above. That currently resides just below the $24 level, which makes a large, round, psychologically significant target as well.

To the downside, if we break down below the bottom of the candlestick for the Wednesday session, then I think we probably revisit the $22 level. This is an area that has been important multiple times throughout the past, so be interesting to see if it can continue to keep the market somewhat afloat. Keep in mind that the $22 level also features support all the way down to the $21.50 level, so it is more or less a “support zone” than anything else. It goes back multiple years, so obviously it is a very interesting place to perhaps pick up silver yet again if we do fall in that region. All things been equal, pay attention to the US dollar and its negative correlation.

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