The silver market experienced some decline during the trading session on Tuesday, as the market continues to fluctuate around the $25 level. However, it is essential to note that the market has been very volatile over the last few weeks, which means that traders need to make a decision soon about whether to sell or hold onto their positions. Although a pullback could be expected as the market is currently at extreme highs, it does not necessarily mean that it is time to sell; it could also indicate a move towards the 50-Day EMA.
Traders need to remain cautious and wait for signs of support after a pullback. On the upside, the $26 level remains a crucial target, and traders should pay close attention to it for potential resistance. Breaking above the $26 level could open up the possibility of $27.
The silver market is extraordinarily volatile, which means that traders need to be prepared for any sudden turnarounds, as seen in the Monday session. However, a significant decline in silver prices should not be a concern until the market falls below the $23 level. If that happens, a lot of support will have been destroyed, and the market could experience a further plunge.
The Federal Reserve meeting on Wednesday could significantly affect the silver market, as the US dollar is typically negatively correlated with silver. If the US dollar suddenly spikes, it could create chaos in the silver market, as traders are used to the two assets being negatively correlated.
It is also worth noting that the market has been holding in a triangle pattern, which could provide traders with an idea of the market's future direction. Therefore, traders need to remain vigilant and closely monitor the market to take advantage of any potential opportunities.
In conclusion, the silver market is currently experiencing a lot of volatility, and traders need to remain cautious and wait for signs of support after a pullback. The $26 level is an essential target, and traders need to pay close attention to it for potential resistance. The Federal Reserve meeting on Wednesday could significantly affect the market, and traders should closely monitor the market reaction as a result.
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