Silver markets have fallen rather hard during the trading session on Friday, slicing through a major trendline. That being said, the market is likely to continue to see a lot of negative pressure, as we are suddenly worried about the lock down trade again. If that is going to be the case, then one would have to assume that the demand for silver will fall apart. After all, silver is an industrial metal, and now that we are threatening the $23 level, this thing is getting rather serious.
SILVER Video 29.11.21
If we break down below $23 rather handily, then it is possible that we go looking towards the $22 level. The $22 level course is an area that I think continues to show itself as being important, as it has been massive support multiple times going back several months. Because of this, the market should continue to see a lot of trouble ahead, considering that we are closing at the range for the week.
That being said, it will be interesting to see whether or not the $22 level can hold, because if it does not it is likely that silver is done and we will see a collapse. Short-term rallies at this point need to take out the top of the candlestick of Friday to show a turnaround over the course of the next couple of weeks. Nonetheless, silver is volatile, so you need to be cautious with your position size as it can wreck your account if you are not careful. At this point, you need to be very cautious about jumping “all in”, but if the market starts to move in your direction, then it is likely that you can add down the road.
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This article was originally posted on FX Empire