[ad_1]
Based on chart analysis, it appears that silver has reached its high point.
On Tuesday, the silver market saw a sharp decline towards the $20.50 level before showing signs of life and attempting to bounce back. The market may have been oversold, and traders need to pay close attention to the US dollar’s strength as it may impact silver’s performance.
There are concerns about global demand and industrial demand, as they will significantly influence the market’s direction. The 200-Day EMA sits just below the $22 level, which will provide substantial resistance if the market approaches that level. However, the market is currently testing the area between the 50% and 61.8% Fibonacci levels, known as the “golden pocket.”
- If the market bounces back from this level, it would be a positive sign for a potential upward trend.
- However, it is essential to note that the recent selloff was severe, followed by a slow decline.
- It remains unclear whether the trend in silver has changed.
Clearing the $21.50 level could provide some momentum to carry it higher but breaking back above $22 would be necessary to convince most traders and open up the possibility of a move towards $24. It is worth noting that the $25 level has been a significant barrier in the past and may continue to be so in the future. Breaking above this level seems unlikely in the near term. Based on chart analysis, it appears that silver has reached its high point.
The factors impacting the silver market are multifaceted. The demand for silver is largely driven by industrial demand, with around 60% of the world’s silver production used in various industries. The global demand for silver in electronics, photovoltaic cells, and other industrial applications continues to grow, and any slowdown in these sectors could significantly impact silver prices.
Another critical factor to consider is the US dollar’s strength. A weaker dollar generally leads to higher silver prices, as investors seek alternative investment options. Conversely, a stronger dollar tends to lower silver prices.
In conclusion, the silver market is subject to various market forces, including global and industrial demand and the US dollar’s strength. While it remains uncertain whether the trend in silver has changed, breaking above the $22 level could signal a move towards $24. However, the $25 level has historically been a significant barrier and may continue to be so in the future. Overall, the outlook for the silver market remains uncertain.
Ready to trade our daily Forex forecast? Here’s a list of some of the best Forex trading platforms to check out.
[ad_2]