Silver Markets Forming Consolidation

Silver markets have rallied a bit during the day on Wednesday to hang about the $25 level. It looks like we are trying to form some type of consolidation based upon the $25 level, so it will be interesting to see how this plays out. All things being equal, this is a market that needs to slow down and decide which way it wants to go. If we can break above the $25.50 level on a daily close, then I would consider that confirmation that silver is ready to go higher. At that point, I would anticipate that silver goes looking towards the $27 region.

SILVER Video 24.03.22

Alternately, if we break down below the 50 Day EMA, which is currently at the $24.45 level, then it is very likely we go looking towards the $24 level. That is an area that has been important more than once, so would not be a huge surprise at all to see the silver markets reach down towards there again. Keep in mind that silver is very volatile anyway, so you need to be cautious about your position sizing as silver has wrecked quite a few accounts recently. The market is more likely than not going to continue to bounce around in this region, trying to build up the necessary momentum to go in whichever direction it chooses.

Ultimately, once we do get a move it will probably be very violent, so at that point, I would become much more aggressive. If you are a short-term range-bound trader, this might be a market that you are interested in, but right now I think it is more or less going to be a waiting game.

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