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.
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This article was originally posted on FX Empire