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Silver Markets Continue To Flirt With $28

Published 05/28/2021, 06:07 AM
Updated 05/27/2024, 01:10 PM
XAG/USD
-0.08%
DX
0.02%
SI
-0.45%

Silver markets continue to be very noisy in general, as we see a lot of questions when it comes to inflation, and of course the $28 level is a large, round, psychologically significant figure.

$28 has shown itself to be rather important multiple times so it is not a huge surprise that we are struggling here. That being said, any pullback at this point in time will almost certainly attract a certain amount of attention, especially near the 50 day EMA.

As the US dollar goes, that something worth paying attention to as well, as the market will see plenty of negative correlation.

At this point, I think that silver is probably going to go looking towards the $30 level, an area that traditionally means that we are going to break much higher.

In fact, the couple of times we have broken above $30 on longer-term charts throughout history, we have made a serious search towards $50. I think that could happen sometime later this year, but I choose to buy silver on dips as it offers plenty of value.

That would be a major breach of selling pressure so obviously we could see a flood of money come into the marketplace. That could send the volatility and momentum picking up quite drastically.

If we do pull back at this point, I think there should be plenty of support not only at the 50 day EMA, but also the $26 level. Beyond that, there is a major uptrend line and as long as the US dollar continues to look a bit soft, it does make sense that silver will gain.

Furthermore, the market will also start to focus on the idea of industrial use picking up with the reopening trade.

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