Silver Price Prediction – Silver Exhaustion Signals at Critical Level

On Tuesday, silver initially attempted to advance, but above $22 it has remained extremely resistant to further upward pressure.

Silver initially attempted to advance during Tuesday’s trading session, as the $22 level was breached. However, we continue to view this area as substantial resistance, so you must exercise extreme caution when attempting to send the market back above there. This region stretches all the way to $22.50, so you should use caution there. If we were to break above that level, it would be a very optimistic sign, but you still need to be concerned about industrial demand.

The yields have taken a bit of a breather, which has greatly benefited silver. The silver market is extremely sensitive to the U.S. dollar and interest rates, so you should pay close attention to these two variables. Noting that the 200-day exponential moving average (EMA) is close to the $21 level, I believe that this could be your next support level if we do experience a pullback. If we were to break below that level, the market would almost probably decline below the $20.00 level, where the 50-Day EMA is located.

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Regardless, you must be extremely cautious with silver because it is a somewhat volatile market under the best of circumstances, so keep this in mind. Keep in mind that volatility is likely to increase, not decrease, as we continue to hear a lot of questions about the economy as a whole and inflation, which has been falling but is still extremely high.

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