The silver market showed very little movement on Monday, after a drastic sell-off on Friday. The market is looking quite noisy and if it breaks down below the bottom of Monday's candlestick, it's highly likely that it will fall toward the psychologically significant $25 level. This level has major significance for the market, and a break below could indicate a drop to the $24 level.
If the market pulls back from here, then it may be a good opportunity to buy silver again. The market has been very volatile recently, but it has also been bullish. This means that if investors wait a little while longer, there may be more opportunities to invest in this market. The 50-Day EMA sits at the $23.50 level and is currently rising, so it is highly likely that buyers will come back in to pick up some cheap silver. It makes a lot of sense that people will be looking to take advantage of any value that appears to show up.
On the other hand, if the market turns around and breaks above the top of Friday's candlestick, we could see the silver market take off to the upside. The $27 level would be the next target, and if we manage to go above that area, it could open up a huge opportunity for a move to the $30 level, followed by the $50 level, as we have seen in the last couple of major bullish markets.
Volatility Ahead
- While it is possible that we could see a breakdown below the 50-Day EMA, it is not very likely to happen anytime soon.
- Therefore, it is still a "buy on the dip" type of situation going forward.
- The silver market has been volatile, but also bullish, so investors may need to exercise a bit of patience in order to find the right opportunities.
Overall, the silver market remains very active, and there is a lot of opportunity for investors who are willing to wait for the right opportunities. While there may be some short-term volatility, investors who have a long-term perspective should be able to find the right opportunities to invest in this market. As always, it is important to exercise caution and manage risk carefully, as the silver market can be unpredictable at times. This is true in most common markets, but as we are so overdone, volatility will more likely than not be worse, not better.
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