Silver markets have gotten hammered during the course of the week, as we continue to see a lot of volatility. The $26 level is being threatened, that being said, the market looks as if we may have to test this uptrend line underneath, or maybe the 50 week EMA. However, the market is likely to see a lot of noise in this area, so it will be interesting to see whether or not the area holds. I think the next couple of weeks will determine where we go for the next several months, as the commodity trade has taken a punch to the face.
SILVER Video 21.06.21
The strengthening US dollar course has been a major issue, as of course the commodity is priced in that currency. However, if the US dollar starts to fall a bit, that could be reason enough for the silver market to rise. There is the strong likelihood that demand for silver will increase, so that is something worth paying attention to as well.
All things been equal, I think that longer-term traders will probably be rewarded for waiting a couple of weeks, trying to figure out whether or not the market will eventually rebound, or if something much more difficult is on the horizon for silver buyers. Ultimately though, I do think that what we have is the potential for an explosive move, and I also believe that the market will make it very obvious if and when it comes.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire