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Silver Markets Attempt to Break Out

By:
Christopher Lewis
Published: Mar 4, 2022, 18:01 UTC

Silver markets have gapped higher to kick off the trading week, only to turn right back around and fill that gap. At this point, the market looks as if it is trying to break out.

Silver Markets Attempt to Break Out

Silver markets have gapped higher to kick off the trading week but turned around to fill the gap as one would expect. After that, we have broken above the $25.50 level, which is a big deal. That being said, we have not seen follow-through, so be interesting to see whether or not we can truly break out. It certainly looks as if we are building the pressure, and it would take very little in the way to go higher.

SILVER Video 07.03.22

Underneath, the $25 level should be an area that people would be paid attention to as it is a large, round, psychologically significant figure and an area that has been important multiple times on the daily chart. With this being said, we will have to pay close attention, but it certainly looks as if the “W pattern” is trying to kick off, which has a measured move of roughly $28.50.

Silver is of course a precious metal and will move based upon greed and fear, but it also is an industrial metal. There does seem to be a significant amount of industrial demand out there, due to the reopening trade. Having said that, I think that we have a lot of inflation that people are trying to bank against as well, so buying metals would be a way to do so. The market continues to be a lot of noise just waiting to happen, so you need to be cautious with your position size. Silver does tend to be very volatile under the best circumstances, so be careful.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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