Silver Markets Attempt to Break Out
Silver markets have gapped higher to kick off the trading week but turned around to fill the gap as one would expect. After that, we have broken above the $25.50 level, which is a big deal. That being said, we have not seen follow-through, so be interesting to see whether or not we can truly break out. It certainly looks as if we are building the pressure, and it would take very little in the way to go higher.
SILVER Video 07.03.22
Underneath, the $25 level should be an area that people would be paid attention to as it is a large, round, psychologically significant figure and an area that has been important multiple times on the daily chart. With this being said, we will have to pay close attention, but it certainly looks as if the “W pattern” is trying to kick off, which has a measured move of roughly $28.50.
Your capital is at risk
Silver is of course a precious metal and will move based upon greed and fear, but it also is an industrial metal. There does seem to be a significant amount of industrial demand out there, due to the reopening trade. Having said that, I think that we have a lot of inflation that people are trying to bank against as well, so buying metals would be a way to do so. The market continues to be a lot of noise just waiting to happen, so you need to be cautious with your position size. Silver does tend to be very volatile under the best circumstances, so be careful.
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