Silver has rallied a bit during the trading session on Wednesday, using the $22.50 level as support.
Silver has shown itself to be bullish during the trading session on Wednesday, as we continue to see a lot of noisy behavior. It’s worth noting that the $22.50 level has been important previously, as we have formed a bit of a gap there. Because of this, it does make a certain amount of sense that we might have some support, and some buying in that general vicinity.
If we were to break down below the $21.80 level, then we could take a move to the 200-Day EMA, and then maybe even the 50-Day EMA. Ultimately, this is a market that I think will continue to be supported over the longer-term, mainly due to people trying to protect wealth. I don’t necessarily like silver is much as I like gold in this environment, because unfortunately the silver market also has a bit of a reaction to industrial demand as well, and that probably is going to cause some major issues.
With this being the case, I think you’ve got a lot of volatility ahead, and perhaps a bit of a range bound situation, but with more of an upward bias than anything else. I like buying dips, but I would not go “all in” into the silver market as it is extraordinarily volatile.
That being said, I have no interest in shorting this market until we break down below the $21 level. The market breaking out the way it has does suggest that we could get to the $25 level, but the massive candlestick from Mondays suggests that it’s not going to be easy to get there anytime soon. It also suggests that it is probably only a matter of time before we would see the occasional jump around in both directions.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.