The silver market has gone through the $20.00 threshold, a psychologically significant area. Nevertheless, there is a hammer from two weeks ago that, if broken, will likely cause the market to plummet to $19.00. There is a market gap at the $19.00 level that has yet to be filled. Before everything is said and done, that may be our destination.
The market’s decline to that level is very probably attributable to the bond market or the U.S. dollar. Rising interest rates in the bond markets have a negative effect on the value of metals in general. Similarly to what we have observed throughout the day, as the price of gold declines, so does the price of silver.
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On the positive side, if the market were to break over the $21 level, it is possible that we would then target the $22 level. The overall trend is still bearish, and it is also worth noting that the 50-day exponential moving average (EMA) has produced quite a deal of commotion, so keep in mind that it would take a considerable amount of effort to get through this entire rise over $21.
At this point, I believe the only thing you can bank on is a great deal of erratic conduct, to say the least. You will continue to need to pay close attention to the noise; consequently, you must employ position sizing and money management to combat potential losses. Under ideal conditions, silver tends to be extremely volatile.