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Wednesday, May 25, 2022

Silver crashes towards support

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Silver markets have fallen quite significantly during the session on Monday, breaking a couple of hammers on the chart and crossing the $25.50 level. This tells us that there will continue to be downside pressure on the upside in the near term and seems to reflect, in part, the strength of the US dollar, which has also hurt gold. In this situation I believe that we are at a turning point and that if we fail to maintain this area, things could get very ugly since the upward break started from here.

Video technical analysis of silver 03/15/22

If it breaks below the $25 level, I think it opens the door for a possible very large bearish move, as it tends to fall much faster than gold or other commodities. We must bear in mind that silver is an extremely volatile market and therefore you have to be careful with the size of your positions, surely a prudent trader will do is use very small amounts and large stop orders.

Remember that silver is not only a precious metal, it also receives demand at an industrial level and therefore the idea that the world economy is slowing down is not helping it at all. The outcome of that kind of news is not looking good for silver so it will be interesting to see what the outcome of all this is. In principle, it is clear that we will continue to see a lot of noise, so we are obliged to protect our accounts.

To see all the economic events of the day, we recommend you visit our economic calendar.

This article was originally published on FX Empire

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