Monday’s trading session witnessed a decline in silver prices, which was followed by a resurgence of activity. Ultimately, this market is attempting to determine whether or not there are buyers underneath to support this market. It appears as if we are attempting to go to greater heights. The 200-Day Exponential Moving Average is also located in this region, which, to say the least, attracts a great deal of interest.
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If we break below the bottom of the candlestick for Monday’s trading session, the 50-day exponential moving average (EMA), which is just above the $20 level, could become accessible. Obviously, $20 is a large, round, psychologically significant number, and many people will be paying close attention to it. By surpassing that level, silver’s price would plummet, and we might perhaps reach $18 or even lower. The $18 level must hold if silver is to avoid a catastrophic collapse and a possible decline to the $12 level.
Pay particular attention to the United States interest rate situation, as it has a significant negative association with this market. As market participants continue to pay close attention to the bond market in general, you must pay attention to everything at the same time. Ultimately, silver is an incredibly volatile market under the best of circumstances, so it’s not terribly surprising that we are fluctuating in this region.
