While the overall outlook remains bullish, traders should remain vigilant and monitor market developments closely in the coming days.
- The silver market experienced a significant decline during Tuesday’s trading session, with a focus on the 200-Day Exponential Moving Average as a critical support level.
- Additionally, the market approaches the 50% Fibonacci retracement level, an area that has historically provided robust support. Traders will closely monitor the 200-Day EMA, given its widespread popularity as a technical indicator.
- Amidst the back-and-forth trading patterns, dips in price continue to present potential value opportunities.
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Breaking below the $23 level could lead the market to test the 61.8% Fibonacci retracement level near $22.25. A further decline may open the door to the $22 level, followed by the possibility of an even deeper correction toward $20. It is essential to consider these support levels while acknowledging the market’s potential noise and the historical presence of buyers in these areas. However, due to the notable volatility in the silver market, traders should exercise caution and manage position sizes appropriately.
Conversely, if the market breaks above the $24.50 level, it could pave the way for a potential move toward the $25 level. The previous support at $25 holds “market memory” and will likely attract traders’ attention. The overall direction of the US Dollar Index and the market’s perception of precious metals as a wealth preservation tool will influence silver’s price dynamics. Monitoring these factors to assess the market’s future trajectory is crucial.
The silver market faced significant selling pressure during Tuesday’s trading session, prompting attention toward the key support level of the 200-Day EMA. Traders also focus on the 50% Fibonacci retracement level, historically associated with strong support. Despite the potential market noise, dips in price continue to offer valuable opportunities. However, caution is advised due to the silver market’s well-known volatility. Breaking below the $23 level may trigger further corrections towards $22.25 and potentially $22, with even deeper declines toward $20 as a possibility. On the upside, surpassing the $24.50 resistance level could propel silver toward the significant $25 level, attracting traders based on market memory. The market’s trajectory will depend on factors such as the US Dollar Index and the role of precious metals in wealth preservation. While the overall outlook remains bullish, traders should remain vigilant and monitor market developments closely in the coming days.
Potential signal: Pay attention to the US dollar. If it starts to cool off, then I will be looking to buy silver. A move above $23.50 that coincides with US dollar selling is a reason to get long. I would have a stop loss at $23.00, with a target of $24.78 above.
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