Silver Video 22.10.20.
Silver Pulls Pack After Yesterday’s Upside Move
The U.S. Dollar Index is currently trying to settle above the nearest resistance level at 92.80. If this attempt is successful, the U.S. Dollar Index will try to get above the 93 level which will be bearish for silver.
Meanwhile, gold returned to the nearest support at the 50 EMA at $1905. Gold needs to stay above the 50 EMA to have a chance to gain upside momentum. If gold settles below the 50 EMA, it will gain downside momentum which will be bearish for silver and other precious metals.
Gold/silver ratio is flat near the 77 level. Recently, gold/silver ratio made an attempt to gain some upside momentum but was stopped near the 20 EMA at 77.80. If gold/silver ratio gets above the 20 EMA, it will move towards the 50 EMA at 78.25 which will be bearish for silver.
From a big picture point of view, silver remains in an upside trend. The upcoming trading sessions are set to be volatile due to uncertainty over U.S. stimulus so traders should be prepared for quick moves.
Silver did not manage to settle above $25.00 and declined below this level. The nearest support level for silver is located at the 50 EMA at $24.55. A move below this support level will indicate that the recent attempt to gain more upside momentum yielded no results.
In this case, silver will decline towards the next support level at $23.90. A move below $23.90 will present an additional problem for silver bulls and push silver towards the support at $23.30.
Silver needs to stay above the 50 EMA to have a chance to develop upside momentum. In case silver remains above this level, it will likely face some resistance at $25.00. If silver gets above $25.00, it will continue to move higher towards the next material resistance at October highs at $25.55. A move above $25.55 will push silver towards the next resistance level at $25.85.
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This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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