Silver markets have fallen initially during the trading session on Monday, but as you can see the market has turned around quite significantly from the 200 day EMA area, showing signs of stability again. The $26 level of course is an area that has been important more than once, and the fact that it was preceded by an inverted hammer suggests to me that the market is likely to go into more or less a sideways move than anything else, as there is conflicting pressure on both sides. Because of this, I think that if you will are a longer-term trader, then this is more or less going to be a “buy-and-hold” situation, while the shorter-term trader is probably going to be more focused on the back and forth action in this general vicinity.
SILVER Video 22.06.21
I am not concerned about the longer-term attitude of silver at this point, at least as long as we can stay above the 200 day EMA and of course the massive uptrend line that forms the ascending triangle. With that, I still look at this as a market that you should be a buyer up, not a seller. If we can break above the top of the inverted hammer on Friday, that would be a very bullish sign, sending this market looking towards the $28 level again. Breaking above that then has the market testing the major barrier that extends to the $30 handle, offering a glimpse of a potential longer-term break out to send this market looking towards the $50 level based upon historical precedence.
That being said, I think we have a lot of noise to deal with right now, and therefore you should keep your position size small enough to reflect that.
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