Silver markets have broken down rather significantly during the course of the trading week, reaching down towards a potential major uptrend line.
Silver markets have initially tried to rally during the course of the trading week but gave back the gains as the $25 level has been like a brick wall. We have slammed into a potential uptrend line, so quite frankly we need to save silver right now, or it is going to be very difficult. If we break down below the bottom of the weekly candlestick, it is very likely that we go looking towards the $22 level underneath. The $22 level underneath is an area that has been supportive for quite some time, and therefore it would make quite a bit of sense that we would see a fight in that area. It is worth noting that the 200 week EMA is sitting just underneath there and going flat as well, so it will be interesting to see whether or not we can hold it there. If not, look out below.
SILVER Video 29.11.21
If we do bounce from here, the $25 level will be a major resistance barrier. If we can break above there, then it is likely that we could go higher. At that point in time, the $20 level would be a target, but we would need to see a major sell off in the US dollar, which at this point in time is a bit overbought. The coronavirus variant that has shown up in South Africa and has the world shaking, as we are not sure whether or not vaccines will be affected. The markets were extraordinarily volatile, and sold off drastically due to the fact that liquidity may have been a measure as well due to Thanksgiving on Thursday, and of course the next day being one that most traders avoid.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.