Silver Markets Continue to Threaten a Major Resistance Barrier
Silver markets stopped at the $25.50 level, an area where we have seen a lot of noise before. This is an area that could cause quite a bit of trouble and, frankly, I wouldn’t be at all surprised to see the market pull back. For this reason, I think it’s probably only a matter of time before we see some sort of significant drop. Whether or not we can hold on at this point will be the biggest question for silver because it is a very manipulated market, and we have seen this area through a lot of trouble before.
SILVER Video 04.03.22
Inflation is of course a major issue at the same time, so be interesting to see whether or not the fear of inflation will drive this market up and break it higher. If so, then we might be looking at a move towards the $27 level. However, if we don’t have enough momentum to go higher, we will likely see this market initially reach the $25 level, maybe even up to the $24.50 level.
Regardless of what happens next, markets will continue to be volatile, and that’s probably the only thing you can count on. For this reason, it is more likely than not that the market should be approached with caution, and so you should keep your position size relatively small compared to normal trading. You should probably also keep an eye on the US dollar capitalization index, as it has a strong negative correlation.
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