Silver Markets Attempt to Recover
Silver markets have fallen a bit during the course of the trading session on Friday to break below the 50 day EMA, but we have also turned right back around to show signs of life again. By doing so, it looks as if the market is trying to at least stabilize in the short term, so therefore I think is probably only a matter of time before we get some type of choppy sideways action. Nonetheless, you should keep in mind that silver is an extraordinarily volatile market, and therefore you need to be very cautious about your position sizing.
SILVER Video 14.02.22
If we break down below the lows of the Friday candlestick, that could open up quite a bit of selling pressure, possibly putting serious damage on the market. That more than likely would open up the door for a move back down to the $22 level, an area that has been important more than once. By doing so, this could bring in quite a bit of negative pressure, but it should be in the back of your mind that the $22 level is supportive all the way down to the $21.50 handle.
You should think of it as a “thick zone of support.” To the upside, if we can break above the 200 day EMA that would obviously be very bullish, but I do not know that it will be easy to do in this environment. I anticipate that what we are looking at here is more of a choppy back-and-forth scenario.
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