Silver markets have been very noisy during the trading session on Monday, as we continue to struggle just below the $23 level, an area that has been difficult multiple times. This being said, the market giving back so much of the gains on Friday suggests that there is a lot of selling pressure above. Furthermore, you should also pay attention to the fact that even though we had the jobs number throw the silver market straight up in the air, it sold off just as quickly.
SILVER Video 12.10.21
When you look at this chart, the $22 level course is an area that should pay a certain amount of attention to, as it has been supportive a couple of times, despite the fact that we did pullback just below there. A breakdown below the most recent low could open up a massive selling signal, with the market looking towards the $20 level.
On the other hand, silver was to break above the 50 day EMA, then it is very likely that we could go looking towards the $25 level, and of course the 200 day EMA between here and there. Both of those could offer a certain amount of resistance, so it is likely that we would see selling pressure there. If we were to break through both of those levels, then it is likely that we would see silver rally for a longer-term move. I do believe that there is a lot of choppy behavior ahead, and quite frankly you should pay close attention to the US Dollar Index, because it does have a major negative correlation to this market.
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Read More: Silver Price Forecast – Silver Markets Continue to Look for Direction