Silver markets have initially tried to rally during the trading session on Friday but have given back quite a bit of the gains as we continue to see a lot of negativity out there based upon a strengthening US dollar. That being said, the market is likely to continue to see noisy behavior in general, and therefore I think we are probably more likely than not going to see a serious fight near the $26 level, and of course the 200 day EMA and the uptrend line underneath. Those both could offer significant support, so I do not have any interest in trying to short this market quite yet, but I am the first to admit that this is starting to get a bit precarious.
SILVER Video 21.06.21
If we were to break down below the support levels, then it is of course would be a very negative turn of events, showing that the commodity trade may be somewhat close to ending. Ultimately, this is a market that I think you need to be very cognizant of what is going on with the US dollar, which course has been hurting silver at a big way. However, if that support underneath holds, there is a huge gap between $27 and $28 above that will need to be filled. With that being the case, if we get some type of supportive candlestick underneath, it could end up being a great trade that would be very profitable. Until then, I am essentially sitting on the sidelines and waiting to see a little bit of stability. Trading massive volatile swings is very rarely the smart thing to do.
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This article was originally posted on FX Empire