The 200-Week Exponential Moving Average has been broken down by the silver market, which has decreased slightly over the course of the week. It appears that the $21 level is attempting to provide support, and it is likely that this area will remain significant. In addition, they are around the 50% Fibonacci level, therefore I anticipate that many people will be paying great attention to them. If we were to break below that level, it is feasible that we may drop to the 61.8% Fibonacci level just over the psychologically significant $20 level.
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As I examine this chart, I can also argue that if we break over the $22 level, the market is poised for significant gains. At that point, the $24 level is likely to be a goal, and you should also bear in mind that the market has been extremely volatile recently, so a small recovery bounce could garner significant interest.
Keep in mind that silver is both an industrial and a precious metal, so I believe that the economic indicators will continue to have a negative impact on silver, but you can also look at the U.S. dollar, where the negative association remains significant. If all other factors remain constant, I do believe that purchasers will eventually return to the market for precious metals. Nevertheless, the U.S. dollar will need to weaken or traders may once again view precious metals as a means of asset preservation. Silver is notoriously volatile, so maintain a sensible position size.