We are hovering just above the 200-day exponential moving average and silver has stabilized somewhat throughout Wednesday’s trading session. The 200-Day Exponential Moving Average has a great deal of weight in the field of technical analysis, therefore many people will be focusing on this area. The $21 level, which had previously been a big resistance barrier, lies below. It should now have some “market memory” in that neighborhood, so it will be interesting to watch if it holds.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
If it fails to provide support, the market might fall to $20, a huge, round, and psychologically meaningful number. On the other side, if we see a reversal and a break above the highs of the last few days, the market may target the $22 level. Remember that there is a significant negative link between the US dollar and silver, as well as between US rates and silver.
Silver is a metal used in industry, thus demand must also be considered. Although there is a global shortage of silver, it has not affected the paper market for years. In spite of this, it appears that the buyers have the upper hand at the moment, and if we can break out over $22.50, silver could attempt to get as high as $25. Due to the Thanksgiving holiday in the United States, volume and the availability of electronic trading may be somewhat sluggish over the next few of days.