Silver markets have initially drifted a bit lower during the trading week, but then turned around to break above the highs of the last couple of candlesticks. Because of this, it is somewhat of a breakout, and it does suggest that we could go looking towards the $24 level again. That is an area being broken above will bring in even more money into this market. When I look at this chart, it is very obvious that the $22 level is trying to offer a bit of a floor in the market, and now that we have broken back above it, that suggests that we are going to recover.
SILVER Video 18.10.21
Pay close attention to the US dollar, because if it starts to fall a bit, that will most certainly help silver. It is interesting at this point in time, because it seems like it is all about shorting the funding currencies, meaning that the dollar and the yen both are getting hammered. The one exception where we see a little bit of strength in the US dollar is the Euro, but the European Union is its own mess. That being said, silver will certainly move counter to what happens with the greenback, and the move this week of course was a very positive turn of events.
With that in mind, all eyes will be on the $24 level. If we can break above there, then the market is likely to go much higher, even reaching as high as $28. However, if we were to turn around a break down below the hammer from a couple of weeks ago, the bottom can follow out of this market and silver much lower.
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This article was originally posted on FX Empire