Ultimately, silver prices displayed a slight rally during Monday’s trading session, influenced by thin holiday trading.
- Silver prices exhibited a slight rally at the beginning of Monday’s trading session.
- However, it’s important to note that this movement was primarily influenced by holiday trading, which tends to result in thin market activity.
- Amidst these conditions, the 200-Day Exponential Moving Average (EMA) positioned below is expected to provide significant support. Consequently, close attention must be paid to the developments in this market.
Short-term pullbacks in silver prices are likely to present buying opportunities, given the current market dynamics. However, if the price were to reverse and break below the $23.50 level, it becomes highly probable that silver will target the 50-Day EMA, located just above the $24 mark.
Furthermore, it’s worth highlighting that silver has experienced a bounce from the 50% Fibonacci retracement level, suggesting a potential continuation of the upward trend. Nevertheless, if a downturn occurs and the price breaks below the 61.8% Fibonacci level, it could lead to a decline in silver prices, with a potential drop to the $21.60 level, and even a further descent to the psychologically significant $20 level over time. The $20 level holds considerable importance, as it attracts the attention of many market participants due to its round-figure nature. A breakdown below this level could lead to a significant negative turn of events, potentially resulting in a crash for silver. However, such a scenario seems highly unlikely soon.
Conversely, if the price manages to break above the 50-Day EMA, it is likely to target the $25 level, and any further upward movement could attract attention around the previous high of approximately $26.50. Consequently, the market is expected to experience significant noise and volatility in that price range. In general, due to the market being sandwiched between two major moving averages and situated around the 50% Fibonacci retracement level, it is anticipated that noise and volatility will dominate this market. Therefore, traders should be prepared to endure volatility when entering any trade.
Ultimately, silver prices displayed a slight rally during Monday’s trading session, influenced by thin holiday trading. The 200-Day EMA is expected to provide substantial support, while short-term pullbacks could present buying opportunities. However, caution should be exercised if the price breaks below key levels, potentially leading to a downward move. Conversely, breaking above the 50-Day EMA could trigger further upward momentum. Overall, the market is anticipated to be noisy and volatile, requiring traders to exercise patience and diligence in their trading strategies.
Ready to trade our Forex daily forecast? We’ve shortlisted the best currency trading platforms in the industry for you.