Silver Gets Clobbered

Silver markets have collapsed during the trading session on Tuesday, right at the 200 day EMA. Furthermore, the candlestick is of course a major sign of weakness, and at this point in time I think we continue to drift lower. A lot of the so-called “fear trade” into the precious metals has been taken out due to the Russians pulling away from the Ukrainian border. With this, I think we have further to go to the downside, especially if interest rates in the United States continue to climb the way they have.

SILVER Video 16.02.22

Keep in mind that silver is also an industrial metal and that is not going to work in its favor right now. The world is slowing down economically, so therefore demand for silver should in theory be quite a bit lower. Beyond that, a simple glance at the longer-term chart shows just how negative silver really is at the moment, as we continue to make “lower highs. With interesting is that the $22 level has held as significant support, extending down to the $21.50 level. If we were to break down below that level, silver really would start to sell off quite drastically, with the $20 level being the initial target.

That being said, it is very fickle market at the moment and a lot of fear is out there. If we were to take out the highs from both Monday and Tuesday, that almost certainly would have silver trying to take out the downtrend line and reaching towards the $25 level. Whether or not that can happen is a completely different question, but it obviously would need a little bit of help due to the fact that we have seen such a dumping of the commodity.

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