Technical Ceilings and Inflation Factors
The 200-day EMA currently sits at the $67.54 level, and I think it is your ceiling. If we were to break above there, then maybe it is a really bullish sign, but ultimately, this is a market that anytime traders see some type of exhaustion after a short-term rally, they’re probably going to favor the downside.
Basically, what’s going on is we are starting to price out inflation. If that’s going to be the case, then commodities in general are going to have a tough go. Whether or not that’s long-lasting remains to be seen because sooner or later people are going to be looking at the potential of dropping rates as a reason to buy other things than the US dollar, but with inflation around the world sluggish and somewhat stubborn, while the US seems to be recovering is going to favor the United States dollar, which puts pressure on silver as well.
Longer term, I still like silver, but it may have to revisit the $50 level. It’s been a historical high a couple of times in the past, so I think a lot of people would be watching.
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Any bounce at this point in time, I think, after the last couple of days, I’m looking more or less at a bounce as an...
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