- The silver markets have been exceptionally noisy over the last few weeks, and during Tuesday's trading session, they fell a bit, bouncing around the $25 level.
- While a pullback might be expected given the extreme highs, it's worth noting that this doesn't necessarily mean it's a selling opportunity.
- Instead, we may see a move toward the 50-Day EMA. As such, it's best to be cautious and wait for signs of support after a pullback.
- The selloff was short-lived, as the Americans stepped into the market and bought everything that wasn’t nailed down to the floor.
On the upside, the $26 level remains a significant resistance barrier and a potential target. Breaking above it would open the possibility of $27. It's essential to keep in mind that silver is an exceptionally volatile market, and a sudden spike in the US dollar following the Federal Reserve meeting on Wednesday could significantly impact it. The two assets are typically negatively correlated, which traders are used to trading. However, they don't have to be.
Try to Stay Informed
If silver does start to break down rapidly, it's not too worrying until it drops below the $23 level. Breaking that level could mean a lot of support has been destroyed, and silver could continue to plunge.
The triangle that the market has been holding seems to be holding for the moment. However, traders should remain cautious and wait for clear signals before making any moves. Silver is noisy at the best of times.
It's also crucial to stay informed and keep an eye on any developments that could impact the market. This includes not only the Federal Reserve meeting but also any economic indicators or geopolitical events that could affect the price of silver.
TLDR, the silver market, has been exceptionally volatile over the last few weeks, bouncing around the $25 level. While a pullback may be expected, it's essential to exercise caution and wait for signs of support after a possible drop to the 50-Day EMA. On the upside, breaking above the $26 level could open the possibility of reaching $27. Traders should be aware of the potential impact of the Federal Reserve meeting and stay informed about any developments during the press conference that could impact the market.
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