Silver Markets Trying to Stabilize

Silver markets have been relatively quiet during the trading session on Monday, as the $25 level has attracted a certain amount of attention. The 50 Day EMA is sitting at the $24.40 level and is rising at this point. That of course is a bullish sign and therefore it is likely that we will see traders pay close attention to that common moving average. Furthermore, the silver market had recently broken out quite drastically, so it does make a certain amount of sense that we had a pullback. This is how we can build up enough momentum to continue going higher.

SILVER Video 22.03.22

On the upside, if we can break out above the $25.70 level, then the market is likely to go looking towards the $27 level eventually. Obviously, it will take a while to get there so I do not necessarily think that you will have a situation like we did last time, but then again anything is possible. The momentum of course continues to be needed, but I think it is much healthier for this market to simply grind higher instead of shoot straight up in the air like a lot of people expect.

On the downside, if we were to break down below the 50 Day EMA, then I think the market is likely to start rolling over and going to much lower levels, specifically the $23 level followed by the $22 level. Pay attention to the US Dollar Index, because if it suddenly spikes higher, that can put pressure on this market at times. That being said, it is worth noting that the volatility is probably the only thing that can be guaranteed in this market.

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