Silver Markets Struggle With 50 Day EMA

Silver markets have initially tried to rally during the trading session on Friday to reach towards the $23.50 level before pulling back again. All things been equal, this is a market that seems as if it is struggling with the 50 day EMA, so I think at this point in time we probably get a bit of a pullback. This pullback is almost certainly going to be paying close attention to the $22 level underneath, which is a large, round, psychologically significant figure, and extends down to the $21.50 level. That is a massive support level that continues to be closely watched.

SILVER Video 17.01.22

On the other hand, if we turn around and break above the $23.50 level, that could send this market much higher, perhaps reaching towards the 200 day EMA which sits just below the $24 level. The $24 level is just a psychological barrier though, because quite frankly I think if we do rally like that, we will see the $25 level be targeted. Having said that, a lot of what we have seen has been in reaction to the US dollar and the way it is behaving, so it will be interesting to see whether or not the US dollar strengthens or weakens.

I would anticipate that we would see an inverse relation continue between these two markets, and therefore it is likely that we will see that continue. All things being equal, this is a market that could be carving out a bit of a consolidation area between the $23.50 level above and the $22 level below. The 50 day EMA of course is somewhat flat, so that does suggest that perhaps we are taking a look at the market through the prism of choppy and back and forth.

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