Nonetheless, if we do break down below the $70 level, then it opens up a move down to the 50-week EMA at the $64.28 level. If we break to the upside, breaking above the $80 level could open up a move to the $90 level, but quite frankly, I see a lot of noise above there.
Interest Rates and Market Sensitivity
Interest rates are extraordinarily high, even though they have dropped for a couple of weeks now. And that has a major influence on what happens next with silver more often than not.
Silver is a market that is quite often very sensitive to interest rates, and of course, very sensitive to risk appetite, as well as the US dollar. So, with all of that being said, I believe you have a situation where traders are going to be watching this very closely.
I do think that we have a potential move to the upside just waiting to happen, but with that being said, I also recognize that you need to be very, very cautious with this. I believe that market participants will continue to have to be very cautious about their position sizing, and of course, watching interest rates because that will remain crucial at this point in time.
