Silver markets initially tried to rally during the trading session on Wednesday but gave back the gains to reach towards the $25 level. That being said, the market seems to have a significant amount of support extending all the way down to the $24 level. In that general vicinity, we will see the 200 day EMA come into the picture which will attract quite a bit of attention as well. Breaking down below all of that could open up a move down to the $22 level, and quite frankly if we continue to see US dollar strength that may be exactly what happens. Furthermore, when you look at the longer-term chart you can see that there was a major double top so that also has quite a bit of negativity attached to it.
SILVER Video 25.03.21
To the upside, the $26 level will be resistance that extends to the $27 level based upon the 50 day EMA. All things being equal, this is simply going to be a market that will continue to see a lot of choppy volatility, but it is worth noting that the last couple of big candlesticks have both been read, suggesting that we are ready to go lower. In general, this is a market that says sideways noise more than anything else, so that something that you need to pay close attention to. At this point in time, I think that you probably get an opportunity to pick up value on some type or breakdown. In general, I like the idea silver on the longer-term charts, but right now we may have a little bit of correcting to do.
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