During Monday’s trading session, silver markets had a brief decline before exhibiting indications of recovery. In spite of this, the market is likely to exhibit a great deal of erratic behavior, and you should also bear in mind that the candlestick that is attempting to form suggests that the market could bounce in this general area, especially given the significance of the $18 level. If we remain above the $18 level, it is likely that the market will attempt to reenter a consolidation region above the $20 level. In addition, the 50-Day Exponential Moving Average (EMA) is falling at this time, therefore it’s evident that this could be a bit of a resistance barrier.
A decline below the $18 level might lead to a decline to the $16 level, and possibly to the $15 level. Currently, the market appears to be attempting to create a double bottom, but if it fails to do so, it would be an extremely pessimistic indicator. The market’s breach of the $20 level creates the potential for an imminent $21 level. If we can break above the $21 level, the $22 level on the 200-day EMA is likely to enter the picture.
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At this time, pay special attention to the overall risk appetite, as the market will continue to experience a great deal of volatility, and silver will struggle to continue growing in such a volatile atmosphere and an economy that appears to be slowing down.
