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Christopher Lewis
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Silver markets have gone back and forth during the trading session on Tuesday as we continue to hang about the 200 day EMA. The 200 day EMA of course is a longer-term trend defining indicator that a lot of people pay close attention to, and as a result is not a huge surprise to see that we are hanging about this general vicinity. The 50 day EMA is above and sinking lower, and therefore it suggests that we may have a little bit of downward pressure coming. Nonetheless, silver continues to be in the crosshairs of traders in general, due to the fact that it is a significant industrial metal, as well as a market that is highly influenced by the greenback.

SILVER Video 04.08.21

Underneath, we have a significant uptrend line rising, and it has held multiple times as it is part of the ascending triangle that has been such a major factor in this market. If that were to be broken below, then the market is likely to go looking towards the $20 level. To the upside, if we do break above the 50 day EMA, then it is likely that we could go looking towards $27, followed by the $28 level above.

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The $28 level is essentially where the gap would be filled, so therefore I think it would offer a significant amount of resistance. Beyond that, when you look at the longer-term chart you can see that the area above $28 has been difficult to overcome anyway. One thing is for sure, the market is more likely than not going to be very choppy, so you need to be very cautious with your position size.

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

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