Silver Markets Get Crushed

Silver markets have broken down significantly during the course of the trading session on Monday to kick off the markets on a decidedly “back foot attitude.” Because of this, silver is going to get dumped out the US dollar strengthens in general. Keep in mind that the silver market of course is priced in US dollars, so it certainly makes a lot of sense that as the greenback rises, silver gets crushed.

SILVER Video 25.01.22

Notice that the $23.50 level is an area that we have been paying close attention to, and as a result it has offered both support and resistance. Ultimately, this is a market that should continue to go lower and looking towards the 50 day EMA. Any short-term rally at this point in time should be a nice selling opportunity on signs of exhaustion, and as a result it is very likely that you will have to pay close attention to short-term charts more than anything else. The “risk off” attitude will continue to be an issue for silver, and it is very likely that we could go down to the $22 level underneath. We are essentially in a huge trading range between the $25 level on the top and the $22 level on the bottom.

We are currently sticking between the 50 and the 200 day EMA, so a lot of traders will be looking at this from both sides of the coin, but quite frankly with the fear trade taking over, it is almost impossible to imagine a situation where silver does well. Keep in mind that silver is much riskier than gold, which can be used as a bit of a hedge against negativity.

For a look at all of today’s economic events, check out our economic calendar.