Silver Continues to See Consolidation Overall
NEW YORK (February 19) Silver was somewhat negative during the session on Monday, but it is worth noting that the session was President’s Day in the US, and this will have had a significant influence on liquidity overall.
Silver Markets Technical Analysis
Silver pulled back just a bit from the crucial $23.50 level, as we have seen it offer resistance multiple times. If we pull back from here, it’s likely that the 50-day EMA offers a little bit of support, but breaking below it opens up the possibility of a move down to the $22 level. All things being equal, this is a market that I think we just continue to ask questions of silver itself. There are a lot of things that go into the silver market as far as pricing is concerned, not the least of which are going to be the interest rate market, the value of the US dollar, and of course, industrial demand are all major influences on silver.
Silver tends to be rather noisy, but regardless, it does tend to over the long term move right along with gold. So, keep an eye on that market as well. If we can break above the $23.50 level, it opens up a move to the $24.50 level, and then eventually the $26 level above. If silver were to break down below the $22 level, it could open up a move down to $21, which is an area where we had broken down through the support and reach previously.
The only thing I think you can count on is that it’s going to be very noisy and choppy and therefore you have to be cautious about putting too much money into the market in any one shot. You want to only add as the position goes in your favor. That being said, when you look at the longer term charts, the area between $22 and $26 has historically been an area of consolidation that a lot of traders seem to be very comfortable trading back and forth in. If that’s going to be the case, then you need to pay close attention to these levels as they are crucial to swing trading. In fact, there are traders that do quite well just going back and forth.
FXEmpire
