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Silver markets have fallen rather hard during the course of the trading session on Monday but found enough support at the $22 level to turn things around and show signs of life again. That being said, the market is likely to continue to see a lot of volatility in this area, due to the fact that the $22 level is so important from a longer-term standpoint. Quite frankly, if we break down below the $22 level, it is likely that we could see massive selling pressure jump into this market, perhaps reaching down towards the $20 level.
SILVER Video 21.09.21
To the upside, if we were to break above the top of the candlestick it is likely that we could go looking towards the $23 level. That is an area that has offered support in the past, so it should in theory at least offer resistance going forward. Ultimately, this is a market that continues to be very noisy, and you need to pay close attention to the US dollar as it tends to move in a negative correlation to silver.
The market has been drifting lower for a while, and even though we have bounced a bit during the trading session on Monday, it is likely that we are going to see a little bit of a bounce in order to find more selling pressure. I would be a seller of signs of exhaustion to the upside, but I also recognize that at the US dollar suddenly gets sold off, that could provide a little bit of “rocket fuel” to send silver much higher.
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This article was originally posted on FX Empire