Silver Markets Find Support After Initial Dip

Silver markets have initially fallen during the trading session on Friday to reach down towards the $25.50 level. By doing so, the market looks as if it is going to continue to find buyers on dips, or at least stabilize. Quite frankly, this is a market that is going to be very volatile but that is not necessarily out of the realm of normalcy for this market. The $25.50 level has now become the “floor of the market” for short-term traders. Ultimately, I think this is a scenario where the market is going to continue to jump around, so you need to be very cautious with your position size.

SILVER Video 14.03.22

On the upside, I see the $27.50 level as a major barrier. Overall, I anticipate that this is a market that will continue to be driven by fear and greed when it comes to supply chain issues. After all, there is a little bit of a “knock-on effect” from the Palladium market, which Russia is a major exporter of. In general, I like this market for more of a range-bound trade, with us being closer to the bottom of it than the top.

Keep in mind that silver does not necessarily behave like gold at all times, so you do need to be cautious with your position size overall. Furthermore, you need to pay attention to the US Dollar cap Index, because if it starts to spike rapidly, that can work against the value of silver. Either way, hang on to your hat mainly because things are about to get really noisy.

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