As we continue to hear a lot of buzz around the $20.00 level, silver prices have gapped downward to start the trading session on Wednesday. Additionally, the 50 Day EMA is nearby. As a result, I believe there is some justification for why we are having problems. In addition to all of that, we had previously seen support in this area, so I believe the overall picture points to a location where you may expect some difficulty.
This market may move significantly higher if we were to break over the $20.50 barrier. When that happens, the market will probably keep trying to move toward the 200 Day EMA, which is situated just beneath the $22.50 mark. In general, that will require some assistance from the markets for interest rates, as they are now down. In the end, I believe this market will have to make a more significant choice, but for the time being, it appears that hesitancy will persist. The $19 level below is the top of a gap that has to be filled, so perhaps that’s what we need to accomplish to create a strong foundation.
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The only thing you can rely on, in my opinion, is a lot of volatility after looking at this chart. Additionally, it will be the case as Friday’s jobs report approaches. Although it appears that we are preferring the downside, this does not necessarily imply that the move will be simple.