Baxia Markets News

Silver continues to look for supportive action

Written by Baxia Markets | Jun 1, 2023 7:00:00 AM

Silver continues to look for supportive action

The silver market experienced a slight rally at the beginning of the Monday trading session, although it was largely influenced by holiday trading, resulting in thin trading volumes. However, there are some key factors that we need to closely monitor in this market. The 200-Day Exponential Moving Average (EMA), positioned below the current price, is expected to provide substantial support. Therefore, it is crucial to pay attention to how the market behaves in relation to this level.

In the short term, any pullbacks in price are likely to present buying opportunities. However, it is important to consider the possibility of a reversal and the breach of the $23.50 level. If such a scenario occurs, there is a high likelihood that silver will aim for the 50-Day EMA, situated just above the $24 mark.

 

Silver market is anticipated to experience considerable volatility in some level

 

Another noteworthy aspect is the bounce from the 50% Fibonacci retracement level. This indicates a higher probability of further upward movement in the market. Nevertheless, if the price were to turn around and break below the 61.8% Fibonacci level, we could witness a decline in silver, potentially reaching the $21.60 level and even possibly descending to $20 given sufficient time. It is worth mentioning that the rebound from the $20 level was quite robust in the past, making it a significant psychological support level that many traders and investors will closely monitor. A breakdown below this level could lead to a highly unfavorable turn of events, potentially causing a crash in the silver market. However, it appears highly unlikely that such a scenario will materialize in the near future.

 

Conversely, if the price manages to surpass the 50-Day EMA, it is likely to target the $25 level, and any further upward momentum would attract attention around the previous high near $26.50. Consequently, the market is anticipated to experience considerable volatility in that price range. In general, it is important to acknowledge that this market is likely to remain turbulent, primarily due to its position between two significant moving averages and around the 50% Fibonacci retracement level. As a result, traders should be prepared for increased market noise and volatility, requiring patience and resilience in navigating potential trades.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit