Silver Markets Continue to Grind Higher
Silver markets initially dipped during the trading session on Tuesday but then turned around to show signs of life again. Obviously, there is a lot of concern out there and the US dollar has been all over the place. With that being the case, it does make a certain amount of sense that we would continue to see choppy and volatile conditions. Given enough time, silver does look like it is going to try to break out and fill the gap above which starts at the $23.58 level. A breach of that could have the market going to the 200 day EMA rather quickly, but I think it is going to take a certain amount of US dollar weakness to make that happen as the negative correlation between silver and the dollar is so strong.
SILVER Video 09.02.22
Underneath, the $22 level is a continued support level that I think a lot of people will pay close attention to, and it is worth noting that it extends all the way down to the $21.50 level. That being said, the highs keep getting increasingly lower, so I think sooner or later we are going to have to answer the question as to whether or not that level can truly hold for the longer term.
If we do break down through that support level, silver will absolutely fall apart, tumbling down to the $20 level at the very least. On the other hand, if we can break above the gap above current trading, we could see this market make a serious attempt at pushing higher. I think silver is going to continue to be very noisy in general and therefore you need to be a bit cautious.
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This article was originally posted on FX Empire
