Silver Shows Signs of Recovery

On the upside, the market may extend its gains and approach the $25 level, reaching $26 after that.

The Silver market experienced a slight rally in Monday’s trading session, breaking above the 200-Day Exponential Moving Average. The market has been consolidating for a considerable period, indicating an impending decision shortly. However, it is important to note that Tuesday marks Independence Day in the United States, which may lead to a significant decrease in liquidity and thin electronic trading during limited hours.

If silver surpasses the $23.25 level, the futures market will likely set its sights on the $24 level. Historically, the $24 level has proven to be an important area of interest on multiple occasions, making it an attractive target for traders. Conversely, should a reversal occur, silver could drop toward the $22.50 level, which has acted as a support level in the past. In this period of consolidation, it is crucial to assess the market’s next move, as it has the potential to result in a significant upward or downward trend.

On the upside, the market may extend its gains and approach the $25 level, reaching $26 after that. Conversely, a break below the $22.50 level would shift the focus to the $22 mark. If this level is breached, the market could decline toward the $20 level. The $20 level holds significance as a psychologically important round number and a previous bounce zone. It is important to acknowledge that the silver market can exhibit occasional volatility with subsequent substantial movements. Additionally, it is worth noting that the recent candlesticks have displayed negative momentum, suggesting the need for careful observation.

Furthermore, it is advisable to closely monitor the performance of the US Dollar, as it typically shares a negative correlation with silver. Understanding the dynamics between these two assets can provide valuable insights for traders seeking to navigate the silver market successfully.

In the end, silver’s recent rally and break above the 200-Day EMA indicate signs of recovery amidst a period of consolidation. While the market may face limited trading hours and reduced liquidity due to the US Independence Day, key monitoring levels include $23.25 on the upside and $22.50 on the downside. A successful breach of these levels could lead to further price movements towards the $24 level or $20 level, respectively. Traders should remain vigilant and consider the potential impact of the US Dollar on silver’s performance.

• Keep in mind that Tuesday will be very illiquid.
• However, on a break above the $23.25 level (daily close), I will be buying again and aiming for $25.
• The stop would be at $22.50.

Ready to trade our daily Forex signals? Here’s a list of some of the top 10 forex brokers in the world to
check out.