Silver Markets Test 200 Day EMA

Silver Markets Technical Analysis

Silver markets have fallen a bit during the course of the trading session on Wednesday to test the 200 Day EMA, an area that tends to attract a lot of attention. The 200 Day EMA has been relatively flat but started to rise a bit over the last couple of weeks, indicating that perhaps longer-term traders are paying close attention to silver. That being said, it is worth noting that the market is very volatile, and even though we are trying to form a hammer for the trading session on Wednesday, the preceding candlestick was an inverted hammer, suggesting that perhaps we are going to consolidate in this general vicinity.

The market is stuck between the 200 Day EMA and the 50 Day EMA, this is quite often an indication that we are about to get a big move, so I would keep my eyes open. At this point, I think that we have the short-term sideways action ahead of us, and a range-bound trade might be the best way going forward. The market has drifted quite a bit lower from the highs, but right now it looks as if the buyers are trying to defend the $24 level. At this point, it is worth noting that the $24 level is supportive while the $25 level has offered resistance as of late, meaning that we may be stuck in a one-dollar range.

Pay attention to the US Dollar Index, as it has a negative correlation to the silver market most of the time, so if it starts to rise, is very possible that silver could fall, and of course vice versa.

Silver Price Forecast Video 07.04.22

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