Tuesday’s trading day began with a decline in silver prices, but the precious metal showed indications of tenacity when the US dollar was sold off. Moreover, interest rates in the United States did decline little, but we remain elevated in terms of both dollars and interest rates. In other words, this is likely to be a modest recovery bounce, and I will be searching for opportunities to short the market above. In addition, the 50-Day Exponential Moving Average (EMA) is located right here, so you’ll need to pay attention to the noise it likely produces.
If we were to reverse course and break below the bottom of the candlestick for Tuesday’s session, then a move down to the $18 level, which has provided tremendous support, is possible. A breach of that support would be a massive success for the Bears, pushing this market further down. In addition, you must keep a close eye on the US dollar in general, since if it begins to strengthen once more, this could be the reason why silver prices collapse. Due to the fact that the global economy appears to be faltering, it is likely that industrial demand will also slow down.
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I still enjoy fading rallies, but I have not yet found the tiredness candle I am seeking. Also pay particular attention to the psychological and structural resistance barrier that the $20 level should present. If we were to break over that level, then we could really see some momentum, but I believe it will require a significant push.