Silver Markets Get Crushed to Test Major Support During the Week

Silver markets have rallied significantly during the course of the trading sessions making up the previous week, only to turn around and fall to form a less than attractive candlestick. At this point, it looks like the $22 level could very well be threatened, as we touched the bottom of that, and it certainly looks as if we are trying everything that we can to test that area. If we were to break down below the $21.50 level, this market could fall apart, looking to reach towards the $20 level.

SILVER Video 07.02.22

To the upside, if we can break above the top of the candlestick for the week, then it is possible we could go looking towards the 50 week EMA above as a bit of a target. It should also offer a bit of resistance, right along with the downtrend line that sits just above it. All things been equal, this is a market that could also be forming a bit of a descending triangle on the weekly chart, although you have to use a little bit of artistry to make that happen.

All things being equal, this is a market that could find its way down towards the $20 level rather quickly if the 10 year yield spikes yet again. After the jobs number on Friday, we certainly have seen an attempt to make that happen, so I think there is still more pressure to the downside than anything else right now, so I feel quite a bit of traders are simply looking to fade rallies as they occur, although you may have to drill down to the daily chart to see the set up.

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