Published: Jan 18, 2022, 16:07 EST
Silver markets have rallied during the trading session on Tuesday again to pierce the resistance just above. That being said, if we can break above the top of this candlestick, that could bring more momentum into this market.
Silver markets have rallied during the trading session on Tuesday to reach towards the $23.50 level. This is an area that of course is a major resistance barrier, and we need to break above there and perhaps even close above there in order to go higher. All things being equal, the 200 day EMA is sitting at roughly $24 level, and that of course makes quite a bit of sense as a target and an area of trouble. If we can break above there, then obviously silver really starts to pick up momentum, and it is likely we would go looking towards the $25 level.
That being said, if we pull back from here it is likely that the bottom of the candlestick for the trading session on Tuesday should offer support. All things been equal, this is a market that I think will be very noisy but pay special attention to the US dollar as a falling US dollar could turbocharge silver and send it much higher. I would also bring to your attention to the $22 level underneath as it has been major support.
The $22 level offer support all the way down to the $21.50 level, and therefore if we were to somehow turn around a break down below there it would be catastrophic for silver. That being said, this looks like a market that is trying to bounce from extreme lows, and perhaps get towards the top of the larger consolidation area, meaning that we could very well get to that $25 level given enough time.
