Silver Markets Continue to Tumble

Silver markets have gapped lower to turn rather negative, but then bounced enough to fill the gap. At this point in time, a bit of exhaustion came into the picture, and we then plunged towards the 200 day EMA. If we were to break down below the 200 day EMA, then we could go looking much lower, perhaps down to the $23 level.

SILVER Video 28.02.22

One of the biggest concerns out there when it comes to silver is the fact that it simply is not gold. Silver also has a bit of an industrial component to it, so if we are going to slow down silver will almost certainly get hammered. Silver tends to underperform gold unless there is an actual reason for silver itself specifically to rally. Right now, it has mainly seen more or less a runaway from risk, and the market now has seen some of those risks fall. After all, there were a lot of concerns about the Russians invading Ukraine, but it seems as if that is going to be a somewhat limited conflict.

Because of this, silver reached towards the top of a major consolidation area, and it does suggest that we may be falling right back down to continue seeing the same back-and-forth that we had seen previously. The $22 level underneath is significant support, so you should continue to see that offer quite a bit of buying pressure. Ultimately, this market will continue to be very noisy, but that is typical for silver. I be cautious about position size, but I also recognize that you need to make sure that you have stop losses in place.

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