Advertisement
Advertisement

Silver Markets Give Up Half the Week’s Gains

By:
Christopher Lewis
Published: Feb 11, 2022, 17:38 UTC

The silver markets have rallied significantly during the course of the week, only to give back about half of the gains.

Silver Markets Give Up Half the Week’s Gains

Silver markets have rallied a bit during the course of the trading week to go looking towards the 50 week EMA, only to give back about half of the gains. At this point, it is obvious that the $22 level is significant support, but it is also a market that has been forming lower highs for a while, and as you can see, I have a trendline drowned that works out the shape of the triangle basically.

SILVER Video 14.02.22

Keep in mind that the $22 level is the beginning of a zone down to the $21.50 level, suggesting that we will continue to struggle to break down through it. That being said, if we were to break down below $21.50, that would open up the floodgates on silver again. On the other hand, if we can turn around a break above the trend line, that could open up a move towards the $25 level. It should be noted that the silver market does not necessarily behave like the gold markets. After all, silver is more of an industrial metal so in theory it should underperform the gold market.

All things been equal, I suspect that you are going to see a lot of choppy behavior, as the silver market tends to be very noisy to say the least, and of course is a much smaller market than gold or currencies. The marketplace will continue to be one that runs on interest rate expectations and of course the latest panic. Because of this, you need to keep your position size reasonable as silver is a very dangerous place to trade at times.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement