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Silver markets have gone back and forth during the course of the trading session on Tuesday to show signs of consolidation yet again. Quite frankly, silver has essentially been “dead money” over the last couple of weeks, as we are currently squeezing between the 200 day EMA on the bottom and the 50 day EMA on the top. With that in mind, it does make a certain amount of sense that you wait for an impulsive candlestick to put money to work.
SILVER Video 14.07.21
All that being said, you can make an argument that the fact that the market is holding above the 200 day EMA and the $26 level suggests that there is at least a certain amount of buying pressure underneath. The volume is a bit anemic, and the 200 day EMA sits just below current pricing. In other words, I think we are simply “killing time” until we can figure out whether or not industrial demand will be strong enough to lift pricing. If it is, then we should see this market looking towards the $27.75 level, which is the top of the gap that sits above. That Has yet to be filled, so it will attract a certain amount of attention in and of itself.
To the downside, if we were to break down below the $25 level then I would suspect silver is likely to fall rather significantly. Because of this, I would become very short of this market as it is a major breach of support, and of course the markets will react accordingly. In the short term though, I think that we are going back and forth and chop around.
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This article was originally posted on FX Empire