Silver Markets Test Trendline

Silver markets have gone back and forth during the course of the trading session on Tuesday as we have broken down below the 200 day EMA, only to turn around and reach towards a major downtrend line that has been important for several months. Because of this, it is not a huge surprise that we have pulled back just a bit. That being said, the market looks as if it is trying to build up enough momentum to go higher. Whether or not it can is a completely different situation, but at this point in time I think the only thing you can count on is a lot of back and forth in the jerky action.

SILVER Video 23.02.22

If we break down below the bottom of the candlestick from both Monday and Tuesday, then it could open up the possibility of a move down to the 50 day EMA. On the other hand, if we break above the top of the candlestick then it is likely that we go looking towards the $24.75 level, an area that has caused a little bit of resistance, and then perhaps even opens up the possibility of a move towards the $25 level.

All things being equal, this is a market that still looks as if it is in a descending triangle, but we are most certainly pushing to the upside and it will be interesting to see whether or not we can continue to try to break out, or if we finally run out of momentum, and then pulled back to look towards a little bit more normalcy. All things been equal, this is a market that is going to be very difficult.

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