Silver Markets Stabilize and 50 Day EMA in Quiet Trading

Silver markets had electronic trading going, but a bulk of the bigger traders were probably on the sidelines as it was a holiday in the United States, being Martin Luther King Jr.’s birthday. That being said, the market seems to be hovering around the 50 day EMA as we have seen previously, which is an area that attracts a lot of technical traders. The question now is whether or not the 50 day EMA will hold as support or resistance? It is kind of an open question at this point, so one should probably pay quite a bit of attention to the idea of a bigger move coming.

SILVER Video 18.01.22

If we break down below the lows of the last couple of days, then it is very possible that we could go looking towards the $22 level, an area that of course has been important multiple times as major support. In fact, this area extends all the way down to the $21.50 level, making it more or less a “support zone.” To the upside, if we were to break above the highs of both Thursday and Friday, and basically the $23.50 level, silver could start to take off to the upside and make a bigger move.

Until we make some type of decision, I would stay away from this market, but it certainly looks as if we are about to make that decision relatively soon. With this being the case, I think it is only a matter of time before this market takes off and starts to pick up momentum again. Tuesday should be rather important.

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