Silver Markets Technical Analysis
Silver had another brutal overnight session plunging down to the $27.50 level before finding any support whatsoever. Ultimately, this is a market that I think needs a lot of help. And the hotter than anticipated GDP numbers coming out of the United States could potentially give it a little bit of a boost from an industrial usage standpoint, but quite frankly, it seems like everybody’s more worried about panicking now than they are anything else. Remember, when assets get sold off in mass like they are right now, silver gets absolutely killed, as it is a volatile market, and a huge contract, and people will sell first and ask questions later, as computers also add to the noise.
A lot of traders have made quite a bit of money in the silver market so it’s not a huge surprise to see that the bottom has fallen out. The question now is whether or not we can bounce, and I think you’re going to have to look over at the gold market for signs of that happening. There are signs that we’re at least trying to slow down the bleeding so given enough time I think we may turn around. But right now, I would not be touching the silver market. It looks extraordinarily toxic, and it wouldn’t surprise me at all to see silver race towards the 200-day EMA before it’s all said and done. At this point, I’d be on the sidelines.
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