Silver Markets Technical Analysis
Silver markets gapped to the upside to kick off the Thursday session and then shot straight through the air, as the GDP numbers have come out miserable in the United States. The thinking is that the Federal Reserve will have a hard time raising interest rates in an economy that is so soft. However, this is more likely than not going to be a false pretense, as inflation is still roaring. In fact, it’s difficult to imagine that the Federal Reserve has any other choice but to raise rates. Because of this, we will more likely than not see this rally faded, especially near the $20.00 level.
When you look at this chart, you can also see that the 50 Day EMA is sitting just above there and dropping. Because of this, I think is probably only a matter of time before dynamic resistance comes into the picture and pushes the silver market back down. That being said, this may be more of a “next week trading quote than anything else.
You can see that we have been in a downtrend for quite some time, and therefore one would assume that sooner or later we have some type of interest in shorting this market again. Pay close attention to the US Dollar Index, because if it starts to take off, it’s very possible that we could see silver get punished as a result. It’s also worth noting that we have already started to give back some of the extreme gains for the session, so we may already be running out of some momentum. Either way, silver is the least of my favorite industrial metals.
Silver Price Forecast Video for 29.07.22
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Image and article originally from www.fxempire.com. Read the original article here.