Silver markets fell during the trading session as it looks like traders are ditching the safety of precious metals for other risk assets.
Silver markets have dropped rather significantly during the trading session on Tuesday, reaching down towards the massive support level at the $22.75 level. As I record this, we have found buyers, so it looks as if the market is likely to see the area hold. Having said that, that does not necessarily mean that I would jump in and start buying silver. After all, this is a market that is going to be very thin for the next several sessions, as it is Thanksgiving week in the United States. That being said, it is likely that the market is going to be very erratic, and therefore I would be very cautious about putting a lot of money into it.
SILVER Video 25.11.20
Looking at this chart, I also recognize that the 200 day EMA is sitting below at the $21.81 level, so I think that might be an area where buyers come in to try to support silver. For what it is worth, silver does tend to take its cues from gold and gold is currently testing the 200 day EMA. If that holds, it could give you a little bit of a “heads up” as to whether or not silver can bounce.
Keep in mind that a strengthening US dollar is not a good thing for silver typically, and that is what we are starting to see as New York picks up. With this being the case, it may be difficult to see massive moves in the short term, but silver should be thought of as more or less a metal that you invest in, not necessarily a trading vehicle, at least not in current conditions.
Gold markets went back and forth during the trading session on Wednesday as we continue to hang around the 50 day EMA. Ultimately, we are facing a significant amount of resistance just above so it will be interesting to see whether or not we move above it.
Gold markets went back and forth during the trading session on Wednesday, as we continue to see a lot of noise in this general vicinity. At this point it’s very likely that we will see a lot of resistance above at the down trending line. At this point, the 50 day EMA and the $1500 level also will offer a significant amount of resistance. I like the idea of fading short-term rallies that show signs of exhaustion above, as we should then go looking towards the bottom of this range. At this point, the market looks as if it is trying to rollover a bit, and quite frankly I think that there is a massive amount of support underneath. The $1450 level underneath will be massive support based upon the fact that it is the top of the ascending triangle from previous trading.
Ultimately, if the market were to get some type of headline coming out of the trade situation it could get a move. Ultimately, I think that the market will simply continue to see a lot of noise in this general vicinity, and therefore I think we are probably going to fade into New Year’s Day. Having said that, if we could break above the $1500 level, it’s likely that the market would then go looking towards the $1550 level. All things being equal, we are still essentially in an uptrend, but we are very close to pressing that issue. If we were to break down below the 200 day EMA, the markets will come unraveled.
Gold markets pulled back a bit during the trading session on Tuesday to test the $1450 level for support. So far, it has in fact found support there, but if it gives that level up it’s likely that the 200 day EMA will be next.
Gold markets have drifted a little bit lower during the trading session on Tuesday but did find a bit of support at the $1450 level. This is an area that was previously the top of the ascending triangle that I have marked on the chart, so therefore the fact that we have bounced from here makes quite a bit of sense. Overall, this is a market that should continue to see a lot of upward pressure, and at this point it’s likely that we could see a little bit of a bounce from here. That being said, there is a lot of noise between here and there, and of course you need to pay attention to whether or not the risk appetite is either “on”, or “off.”
All things being equal, the market is likely to continue to see a lot of volatility, but if we do break down below the $1450 level, it’s likely that the market within go down to the 200 day EMA closer to the $1415 level. Beyond that, the $1400 level underneath should be supportive as well, but if we were to give up $1400, it’s likely that the market could go much lower. To the upside, if we do break higher, clearing the 50 day EMA would be a sign that we are going to go higher. All things being equal, it’s very unlikely that the market is going to have an easy way one way or the other, so waiting for an impulsive candlestick is probably still going to be the best way to trade this market.