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While the market may eventually see buyers stepping back in to pick up silver, the reality is that the market is a little overdone at the moment.
- Silver experienced a sell-off on Friday, reaching down toward the $25 level, an area that has been sliced through a couple of times already.
- If silver breaks down below this level, it could potentially go down to the $24 level, which has acted as a magnet for prices in previous trading.
- The 50-Day EMA is currently rising towards the $24 level, which adds weight to the idea that buyers would step back in if there is a selloff.
While there are reasons for silver to sell off beyond exhaustion, such as weaker-than-anticipated industrial demand, silver is not just a wealth preservation vehicle. It’s also an industrial metal, which has actual real-world industrial use case scenarios. Therefore, the market should consider both industrial and investment demand when evaluating silver’s price movements.
If silver rallies from its current level, traders should look toward the $26 level, which has seen a lot of resistance previously. If silver can break above that area, it could open up the possibility of a move to the $27.50 level, and anything above that could lead to a move to the $30 level. In general, it’s probably worth noting that if we make that move, we could make a huge push toward the $50 level as we have seen a couple of times previously.
While the market may eventually see buyers stepping back in to pick up silver, the reality is that the market is a little overdone at the moment. Therefore, a pullback is probably the healthiest move that the market could make at this point. This is because markets cannot go in one direction forever, and eventually, someone somewhere has to start taking a profit.
At the end of the day, silver experienced a sell-off on Friday, reaching down towards the $25 level, an area that has been sliced through a couple of times already. The $24 level has acted as a magnet for prices in previous trading, and the 50-Day EMA is currently rising toward that level, which suggests that buyers may step back in if there is a selloff. While silver is not just a wealth preservation vehicle and has actual real-world industrial use case scenarios, weaker-than-anticipated industrial demand could potentially cause a sell-off. If silver rallies, traders should look towards the $26 level for resistance. A pullback in the market is likely the healthiest move that could occur at this point, as nothing goes straight up in the air forever.
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