Silver Futures Index $SILVER (SILVER)

[DiscoverGold]

Silver Breaks Above the 200-Day EMA
By: Christopher Lewis | October 18, 2023

• The silver market rose higher during the course of the trading session on Wednesday, breaking above the 200-Day EMA.

Silver Markets Technical Analysis

Silver has broken higher during the trading session on Wednesday, breaking above the 200-Day EMA in a significant surge higher. Breaking above the 200-Day EMA opens up the possibility of a move to the $24 level, however it’s also worth noting that silver is extraordinarily volatile, and it has stretched itself quite far. Ultimately, the market is probably going to run into a bit of noise between now and $24, but it certainly looks as if the buyers are going to do everything they can to push higher.

The US dollar of course does have a negative correlation to the silver market, but lately it seems to be more or less an argument for safety. We have seen gold move higher as well, so it looks like people are trying to do everything they can to get away from any type of danger. The $22.50 level underneath is a significant support level, as it was previously shown to be. Ultimately, this is a market that has a lot of volatility just waiting to happen, and the fact that we have rallied this quickly tells me that the market still has a lot of indecision as we have done a complete round trip in a relatively short amount of time. While we did have a vicious rally, the reality is that we are now getting overdone, so it’s possible that we get a pullback.

Interest rates rising typically works against sellers, but the last couple of days have been a bit different. These negative correlations come and go at times, so pay attention to the price action more than anything else. However, silver also has the industrial component that it needs to pay close attention to, and one would have to wonder whether or not that is going to continue to help. That being said, it appears that the US economy is not slowing down, and if that’s going to be the case, demand for silver may pick up just due to the industrial component. The size of the candlestick is rather impressive, so one would assume that there’s going to be a bit of follow-through to the upside from here.

Read Full Story »»»

DiscoverGold