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Technical analysis of silver markets
Silver markets rallied quite significantly at the start of Thursday’s trading session, but found the 50-day EMA to be a little too hard to break past. Moreover, we also have to worry about the $20.50 level, so everything is combining in a huge resistance. I think at this point we probably have a lot to sort out right now, not the least of which will be the fact that the non-farm payroll announcement will be released during Friday’s session.
If we break below Wednesday’s session low, I suspect the silver market will begin to fall fairly quickly. In this scenario, it is likely that we have a situation where the Federal Reserve decides what happens next. As traders continue to worry about bond markets and yields, this will have a major influence on what they do with precious metals. Ultimately, it’s a market that’s vulnerable to higher yields and, of course, a stronger US dollar. If the number of jobs comes out hotter than expected, that may be exactly what is happening.
On the other hand, if the market were to break above the $20.50 level, we may see a much bigger move. If that were to happen, the market is likely to lean towards the $22 level, maybe even the 200-day EMA which is currently just below the $22.50 level. Either way, I think we’re about to see an explosive move. That being said, keep in mind that we have been in a downtrend for quite some time, so you might think this is the easier route to take.
Silver Price Prediction Video for 05.08.22
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