Throughout the week, silver markets have declined significantly, testing the $20 level before reversing course and exhibiting signs of vitality. It is also important to note that the 61.8% Fibonacci level is located right around the $20 level, so it makes sense that the price has rebounded from there. By doing so, it appears that we may experience a small relief rally, but I am unsure as to whether or not we will continue to rise with relative ease. When it comes to industrial demand, which is a significant factor in the silver market, there are many queries that remain unanswered.
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If we were to break below the bottom of the candlestick for the week, it is conceivable that we could decline to the $19 level, and then possibly to the $18.50 level after that. If we do rally from here, the 50-Week EMA is located at $21.92 and the 200-Week EMA is located below at $21.52. However, it is likely that we will continue to see quite a bit of erratic behavior, and the fact that we bounced so strongly on Friday does at least offer us a little bit of optimism to move to the upside.
Nonetheless, this is a market that I believe will continue to experience a great deal of volatility, so you should be extremely cautious with your position management. However, it does appear that we are attempting to recover, so it is possible that we will see an attempt to grind higher.
