Silver markets have bounced a bit during the course of the trading session on Wednesday as the $26 level continues offer a significant amount of support. That being said, the market is likely to continue looking at the 200 day EMA underneath as an area of significant support as well. Furthermore, the uptrend line underneath should also offer a significant amount of support as well. Ultimately, there is a market boost to the idea of industrial demand picking up in the recovery. Furthermore, the US dollar continues to fall a bit, that could drive the market higher as well. All things being equal, this is a market that I have no interest in shorting, and I think we could go looking towards the 50 day EMA which is sitting just above the $27 level.
SILVER Video 24.06.21
If we can break above there, then it opens up the possibility of filling the gap which would extend the market reached towards the $28 level. Above there, then we have a significant amount of resistance all the way to the $30 level. A break above the $30 level then opens up a move towards $50. We are still in the midst of a major ascending triangle, which of course is something worth paying attention to as well. Ultimately, this is a market that I have no interest in shorting until we break down below the bottom of the triangle, something that it looks like we are trying to avoid right now. It is also worth noting that we are essentially stabilizing just above the 200 day EMA which attracts a lot of longer-term traders as well. At this point, I believe this continues to be a bit of a “buy on the dips” scenario.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire