silver had a very choppy week but it ended in the green which suggests we are still building some base pattern from the recent sell off. We have created a little “double bottom” near the $ 21.50 mark, and I think the market is doing everything it can to respect that right now. If we manage to break above the candle in the last week, then in my opinion we will most likely hit the $ 24 or even $ 24.09 level where the 50-week EMA is currently. That being said, it’s worth noting how important the $ 22 region has been as a support for a number of years, so the fact that we have held this area is probably not a big surprise.
SILVER Video 1/3/22
Obviously the US dollar is in charge, so watch out for the US dollar index and the behavior of the pallets. The market certainly looks like it is ready to move back into a risk-on mode after the New Year and silver will be a great proxy for that. If traders show a lot of risk taking, silver should be one of the main beneficiaries. In this scenario, I could even see this market go a lot higher and maybe test the $ 25 mark which is the next big sell-off point on the weekly chart. On the flip side, if we were to get something disastrous in motion, a break below the $ 21.50 mark could be terrible for silver dealers. However, from today’s perspective, that doesn’t seem to be the case, and I suspect any pullback will likely be bought.