Silver Markets Pull Back for the Week

Silver markets have fallen during the week to reach the $24.50 level. We have bounced just a bit from there, suggesting that perhaps we are trying to go to the upside eventually. It is worth noting that the previous week was a shooting star, and that of course is a very negative candlestick. However, we are fighting that shooting star, so it does suggest that we are trying to continue to go to the upside, despite the fact that there is a significant amount of pressure.

SILVER Video 21.03.22

I believe this is a market that is going to be very noisy and that is something they need to keep in the back of your mind. Keep your position size reasonable, as this market can jump around quite drastically. That being said, I do think that it is only a matter of time before we go higher. The 50 Week EMA is sitting just above the $24 level, which looks to be supportive.

The market has been bullish until this week, so I think this was probably necessary. Nonetheless, I do think you need to be cautious about jumping “all in”, so this is probably a market that you need to scale into, especially if you are a buyer. On the other hand, if we break down below the weekly candlestick, it is possible that once we get to the $24 level, we could see a bit of capitulation. Pay attention to the US Dollar cap Index because it does have a strong negative correlation to silver most of the time. Ultimately, this market does tend to follow gold, so pay attention that market as well.

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