The silver market has seen choppiness early on Monday, as we continue to hang around just below the important $60 level in this market.
Silver
The silver market has been very noisy during the trading session on Monday as we continue to see a lot of volatility, but quite frankly, I think we have a situation where we are just trying to figure out what it is that we can do here with the $60 level, of course, offering a pretty massive, large, round, psychologically significant figure that has people watching very closely and, more likely than not, has people thinking that perhaps we are on the precipice of falling apart.
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However, you could also look at this through the prism of a potential liquidity sweep just below the support level. We'll have to wait and see. One thing is for sure: the US dollar seemingly has a grip on the market, and as long as the US dollar continues to strengthen, that puts a little bit of pressure on silver.
Key Support Levels and Market Outlook
If silver were to break down below the lows of last week, right around $55.75, I think that opens up a drop down to the $50 level.
Interest rates did play a huge part in how this market moved previously, but it seems like that story has gone away. The last couple of days have shown some real resiliency, so a rally from here wouldn't surprise me too much, but we'll just have to wait and see.
The 200-day EMA, I think, is about as far as this goes. I would look at any rally that shows signs of exhaustion as a potential selling opportunity. This is a market that I think has a lot to prove still, so I am going to be very cautious at this point in time.
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