Silver Markets Bounce From Crucial Support

Silver markets initially fell during the trading session on Thursday but found the $25.50 level supportive enough to keep the market afloat again. By doing so and ended up forming a very supportive and strong-looking hammer. At this point, it looks like silver is going to try to reach towards the highs again, just above the $27 level.

SILVER Video 11.03.22

That being said, I do not know if we are ready to break out quite yet. There is a lot of noise just above that $27 level, so we may be trying to build up a little bit of a range in order to get enough inertia to finally make a move either higher or lower. Silver does tend to be volatile, to say the least, so you need to be very cautious about your position sizing.

If we do break down below the $25 level, that would be the death knell for this trend, lease for the short term. At that point, I would anticipate that the market could go looking towards the $24 level rather quickly.

On the upside, if we were to break above $27.50, then it could open up a move towards $30 but I think that would take some time to get there. After all, we are a little overdone, to begin with, so unless there is some type of major shock to the system, we probably need to kill time in a sideways move more than anything else right now to work off some of this froth. Short-term range-bound trading systems will probably be the best route to go in the next few sessions.

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