Silver markets have found the 200 day EMA to be resistive again during the trading session on Monday, as we are trying to figure out where to go next. Quite frankly, there are a lot of concerns when it comes to the global growth situation, so it will be interesting to see whether or not that continues to cause issues. Ultimately, when you look at the chart, you can see that there has been clearly a lot of resistance of the 200 day EMA, so breaking above that on a daily close would be a very bullish sign, perhaps reaching towards the $27 level.
SILVER Video 27.07.21
Underneath, we have a lot of support at the previous uptrend line and of course the $25 level. The $25 level of course is a large, round, psychologically significant figure that a lot of people will be paying close attention to and breaking down below there could open up significant downward pressure. Breaking down below that level would open up a massive amount of selling pressure. If that is going to be the case, then it is very likely that we are going to see a lot of “risk on behavior” globally, as silver is so highly tied to the industrial demand of economies around the world.
You can see that the 50 day EMA is starting to drift lower, signifying that it is going to be harder to get further to the upside in the short term. If we were to break above that level, then it is likely that we could go much higher, but that would obviously be under the guise of some type of industrial recovery. There are so many moving pieces right now that this market will remain choppy regardless.
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This article was originally posted on FX Empire