Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Silver Continues to Look for Momentum


From a technical analysis standpoint, it appears that the Silver market is trying to turn around and move towards the upside.

  • On Tuesday, silver price experienced a lot of noise below the 200-Day EMA and went back and forth during the trading session.
  • As the 200-Day EMA is often followed by technical traders, it is not surprising that people are paying attention to it.
  • Additionally, the 200-Day EMA sits around the psychologically significant $22 level, which has attracted a lot of attention due to a gap in the futures market.
Advertisement

During Monday’s trading session, silver formed a hammer while testing the 50% Fibonacci root level. This is a positive sign, but it will require enough momentum to break above the 200-Day EMA. If this happens, the market will likely move towards the 50-Day EMA, and possibly even the $23.50 level. However, the recent selloff has been quite brutal, so it is not unexpected to see a bit of choppiness in this area. If the uptrend continues, it will require a significant amount of work to turn around from the massive selloff.

Traders should pay close attention to the US dollar, as there is typically a negative correlation between the two assets. However, this does not have to be the case. Since silver is an industrial metal, traders should also monitor whether there is significant industrial demand for it. If the economy is slowing down, it could work against silver. On the other hand, some traders may use it to preserve their wealth, which could support its price. This is part of the problem with silver right now, as there are so many different moving pieces.

From a technical analysis standpoint, it appears that the market is trying to turn around and move towards the upside. However, traders should keep a close eye on resistance levels, such as the 200-Day EMA, 50-Day EMA, and the $23.50 level. Additionally, they should monitor the US dollar and any significant news events that could impact the market’s performance.

Overall, while there has been a lot of noise in the silver market, traders should focus on technical indicators and significant levels of support and resistance. Additionally, they should monitor industrial demand for silver and the US dollar. If the market can break above the 200-Day EMA, it could indicate a positive trend towards higher prices. However, the recent selloff and choppiness in the market make it difficult to predict the future direction of the silver market with certainty.

Silver chart

Ready to trade today’s Silver price prediction? We have shortlisted the top commodities brokers to check out.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.