Silver markets have initially fallen during the course of the trading session on Monday, reaching down towards the $2.50 level. The $2.50 level is an area where we see a lot of support, based upon the previous action. The hammer that formed for the day does suggest that we are ready to go higher, perhaps reaching towards the $29 level, which is an area that is resistive, and most certainly the $30 level will be. If we can break above the $30 level, then it would be a massive sign that we are going to go much higher. At this point, the market would probably go looking towards the $50 level, based upon historical precedence.
SILVER Video 15.06.21
To the downside, markets continue to see the 50 day EMA as important, as we have seen the market bounce from it a couple of times in the past. All things been equal, the market is still very much in an uptrend, but we continue to see a lot of resistance above. This is essentially a “squeeze play” that will play out rather soon. Pay close attention to the US dollar, because if it starts to fall apart then that could be another reason for this market to go to the upside.
When you look at the chart, there is a huge ascending triangle that has been constraining this market, and sooner or later we will have to make some type of decision. Because of this, I think what we are seeing is a scenario where we are building up for the next big move, but until then you are going to have to be very cautious.
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