Beneath the surface, the 200-day Exponential Moving Average stands as a formidable support level.
In the grand scheme of things, any retreats observed at this juncture are likely to attract buying interest. Nonetheless, it’s imperative to recognize that silver’s performance is intricately tied to industrial demand, given its dual role as both a precious and industrial metal. This characteristic becomes particularly pertinent when considering its vital role in green technologies.Beneath the surface, the 200-day Exponential Moving Average stands as a formidable support level. To reach this level, it would necessitate a breach of the price action witnessed on Thursday and Wednesday, effectively forming a short-term “floor” for the market. As long as we remain above this level, the probability of further upward movement remains high, affirming the notion that pullbacks are poised to present attractive buying opportunities. This scenario gains further traction if the US dollar continues its decline, given that the silver market is denominated in US dollars. Minor Pullbacks May OccurUltimately, the $25 level is the immediate target, with potential upside momentum extending to $25.50 and beyond. A breakthrough at this juncture could trigger a significant “Fear of Missing Out” trading frenzy. Nevertheless, it’s essential to acknowledge the inherent noise in this market, coupled with the challenging nature of holding large positions in silver contracts. Prudent risk management, such as maintaining reasonable position sizes, is paramount in navigating this volatile environment. While minor pullbacks may occur, the presence of eager buyers in the market is expected to persist.At the end of the day, silver’s recent rally underscores the positive sentiment surrounding precious metals. The $25 level serves as a pivotal point to watch, and the market’s performance is intricately linked to both geopolitical factors and industrial demand. Investors should remain cautious, manage risk diligently, and stay attuned to developments in the US dollar and interest rate landscape as they navigate the dynamic silver market. At this point, its all about finding the occasional value trade on dips. More By This Author:Natural Gas Forecast: Markets Continue To Price In Recession Pairs In Focus This Week – Sunday, Nov. 19GBP/USD Forecast: Looks Underneath
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