FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
59,470,595Confirmed
1,401,384Deaths
41,113,400Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Silver

Silver markets have broken down significantly during the trading session on Wednesday, slicing below the $24 level in a sign of extreme weakness. That being the case, a lot of this will have been due to US dollar strength in the fact that people have no way of gauging any type of industrial demand as PMI numbers are starting to soften. With that being the case, it does make sense that we are going to continue to see negative pressure, and I do believe that gold is “going on sale.”

SILVER Video 24.09.20

Underneath, I see the 200 day EMA as potential support near the $20.46 level, but I also recognize that the $20 level underneath is going to continue to offer a bit of support. There is a certain amount psychology when it comes to the $20 level, and of course the 200 day EMA is sitting just above there. Ultimately, that is a technical indicator that a lot of traders will pay attention to, so it is most certainly worth seeing whether or not we get some type of reaction to it. Any type of bounce at this point will be bought into, but we need at least a daily candlestick showing that support.

A hammer, engulfing candlestick, something like that to hang your hat on. In the meantime, I believe that this is a market that continues to fade short-term rallies, as the US dollar breakout is just starting from what I can see. Pay attention to the US Dollar, because it will be crucial, and therefore if it continues to strengthen it means that silver will struggle to gain any type of traction.

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

Advertisement
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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US