Silver markets rallied slightly during Monday’s trading session, to continue showing signs of support below the $ 22 level. Whether or not we can hang on to this rally is a completely different question, but it should be noted that there is a lot of support not only at the $ 22 level, but below and also extending to the level of. $ 21.50. For this reason, any breakdown below that $ 21.50 level will certainly be under close scrutiny by traders around the world. It would almost certainly send new shorts.
SILVER Video 12/14/21
The level of $ 22.50 above is a major resistance barrier, and until we can break through that level, it’s hard to imagine that the silver will suddenly take off. Keep in mind that silver is not only influenced by the US dollar, but it is also influenced by perceived industrial demand. The market will of course pay close attention to omicron lockdowns, which could have a major impact on the demand outlook.
Additionally, you should keep in mind that we are approaching that time of the year when liquidity becomes an issue, as most traders will pay more attention to the holidays than to the markets themselves. Money tends to be somewhat illiquid at first, so it could be recipe for disaster if you’re not careful. At the end of the day, I think it’s a market that’s probably trying to find some type of stability, but it will probably look more like a consolidation than anything else at this point. That being said, position sizing will be the most important thing you can do.
Silver markets rallied slightly during Monday’s trading session as the $ 22 level continues to be a strong support level.
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