More than half of global orders for silver come from industrial use. It is a metal as versatile as gold for making jewelry, superconducting electricity, and making electronics composants.
Everyone expected an increase in the demand for silver, especially after more attention to clean energy in several areas, such as the internal components of solar panels and the adoption of fifth generation (5G) communications networks.
A senior technical strategist at SKCharting.com thought that bullish movements of silver will be stopped with the possibility of silver dropping to $17 an ounce.
The difficulty of breaching the $19.50 level will make selling pressures renewed for a possible return to the bottom below $19.
Price strength and stability above the almost 1-week EMA of $19.25 and the 1-month EMA of $19.47 would signal a re-upside move that could test the swing high of $20.88 and the weekly middle Bollinger band of $21.08 followed by the 38.2% Fibonacci level of 21.50 dollar.