Silver Markets Crash Into a Big Figure

Silver markets have been very bullish during the trading session on Tuesday to reach towards the $25 level. The $25 level is of course a large, round, psychologically significant figure, and an area that begins a rather large resistance barrier that extends to the $25.50 level. Because of this, I would not be surprised at all to see a little bit of a pushback, but it is still a market that is going to move based upon a potential safety trade to get towards hard currency such as silver.

SILVER Video 02.03.22

Do not get me wrong, I do not believe that silver is a currency in the purest form, but when gold takes off, it often has a bit of a “knock-on effect” over here. The market has stalled just a bit at the $25 level, and that is to be expected so far. If we pull back from here, then it is likely that we could go looking towards the $24.50 level, possibly the $24 level. On the other hand, if we were to turn around and take out the top of that wild candlestick from last Thursday, it is likely that we would see this market go straight up in the air.

Keep in mind that under normal circumstances, silver has a major negative correlation to the US Dollar Index, so you need to pay close attention to that. Ultimately, this is a market that is going to be wild and volatile, so you have to be cautious about the position size that you put into this market. We are a little extended at this point, so I would anticipate a lot of noise between here and the 200 day EMA if we do get a pullback.

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