Silver Markets Get Hammered During the Week

Silver markets have broken down significantly during the course of the week, showing signs of exhaustion, reaching down towards the $22 level. The $22 level has been massive support extending down to the $21.50 level, so I think we will continue to see that come into play. This is especially true considering that the 200 week EMA is sitting just below there. Ultimately, I think what we have here is a situation where we will probably see a significant amount of support, but if it does get broken below, silver is going to get absolutely crushed.

SILVER Video 31.01.22

To the upside, we have a downtrend line that of course comes into the picture, and it would need to be broken to get bullish again. That does not mean that we cannot bounce around in the range that we been in, but it is worth noting that the highest progressively continue to get lower. This generally means that we are going to continue to see downward pressure. We are squeezing against a major support level, and if it does finally break down, I think you will get a massive trade. On the other hand, a breakout above that downtrend line and of course the negativity that we have seen over the last week could send this market looking towards the $25 level and beyond.

Pay close attention to the US dollar, because it does have a massive negative correlation to the silver market, and that should continue to be the case going forward. In general, that something that you need to pay close attention to for a while.

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