Christopher Lewis
Add to Bookmarks

Silver markets have got absently crushed during the trading session on Monday to kick off the week, reaching down towards the 50 day EMA. The 50 day EMA underneath of course is a technical indicator the people will be paying attention to, but if we break down below there it is likely that we could go to the $25 level. The size of the candlestick of course is important to pay attention to as well because it is so long. Picking up the volatility in the momentum in the downward direction dollars of course suggests that we probably have further negativity, at least in the short term.

SILVER Video 22.09.20

The $25 level is of course a large, round, psychologically significant figure, and of course the $24 level underneath there will be important as well. To the upside, if we were to recapture the $26 level, it is likely that the market could try to go back towards the $28 level. Pay attention to the US dollar, because it will lead the way going forward. If the US dollar continues to strengthen quite drastically, the silver markets will continue to fall. Do not get me wrong, I have no interest in whatsoever when it comes to shorting this market, so I am looking for opportunities to pick up silver “on the cheap.” It has gotten way ahead of itself, and it is worth noting that gold looks very similar. That being said, we should have quite a bit of negativity in general, but I do think that eventually we will get a certain amount of value in the precious metals.

Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker