Silver Markets Break Down in Risk Off Trading

Silver markets have gapped lower to kick off the trading session on Thursday to kick off a nasty selloff. That being said, the market is likely to continue to see plenty of selling pressure due to the fact that there is a general “risk off” type of situation and that of course is not going to be conducive to silver doing well. Because of this, I think that any time we get a short-term rally, we have to look at this through the prism of selling the market in order to take advantage of the overall malaise when it comes to risk appetite. When you look at the longer-term chart, you can see that we are forming a bit of a descending triangle, and now it looks as if we are ready to go towards the bottom of the range.

SILVER Video 28.01.22

The $22 level underneath is of course a significant support level as you can see from multiple attempts to break down through there. That being said, the market is likely to test that area and of course recognize that there is a lot of noise all the way down to the $21.50 level, thereby making a bit of a supportive “zone” in this general area. All things being equal, this is a market that we will continue to see any short-term rally probably get sold into, as the silver market tends to be much more volatile than its cousin the gold market. If the US dollar continues to strengthen, then silver will get hammered.

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