Silver Forecast: Looking for Buyers Again

• Silver had a brief pullback after opening higher in the futures market on Monday. As a result, there appears to be an attempt to establish a support level that the market can use as a springboard.
• It is worth noting that the $21 mark has played a significant role in the past, which may account for the current turbulence in the surrounding area.
• Additionally, this mark is also near the 50% Fibonacci level, making it another factor that may be affecting the market. While the Fibonacci level may not necessarily be reliable, it will bring a certain amount of retail traders into the fray.

However, there is a lot of activity occurring above this level, so it is important to keep an eye on multiple levels. The first level to consider is the 200-Day EMA, which is around $21.90. Additionally, the 50-Day EMA is just above this level and could also come into play, although it appears to be on the verge of falling below the 200-Day EMA, resulting in a "death cross." However, this signal may be slightly delayed, so it should not be relied upon too heavily. Furthermore, by the time the signal forms, a lot of traders are very late to the market. I have never found that to be overly reliable, but perhaps something that is thought of as a tertiary signal more than anything else.

The Market is Likely to Remain Volatile

If the market can break through the $22 level, it is possible that it could climb back up to the $23.50 level, where it previously encountered significant resistance. This level has proven to be crucial multiple times in the past, so it is likely to be a tough obstacle to overcome. In conclusion, the silver market is still uncertain about its direction, and there are many factors that may affect it, including changes in industrial demand and the negative correlation with the US dollar.

As a result, the market is likely to remain volatile and noisy in the short term, making it an opportunity for short-term trading rather than a long-term buy-and-hold type of scenario. After all, silver is extraordinarily volatile under the best of circumstances, and with all of the arguing that is going on about whether or not the central banks are going to remain tight or have to cut rates, markets in general continue to be headache-inducing.

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