- The silver market fell initially during the trading session on Tuesday but has seen enough buying to turn things around and let the market.
- The question at this point is going to be whether or not we have enough stability to keep this market flow.
- I am most certainly interested in this market, but I also recognize the silver is extraordinarily volatile, and of course we did have a major selloff during the trading session on Monday, and so looks like that typically don’t go away at the drop of a hat.
It is because of this that I am very cautious about buying the silver market, especially considering that the silver market is known for being extraordinarily volatile, and of course it is also known to be highly manipulated over the years. With that being the case, the market is likely to continue to see a lot of hesitation, and quite frankly I think there’s a reason why people prefer gold anyway. Remember, even though silver is considered to be a precious metal, it doesn’t trade in the same way. After all, you have to keep in mind that the silver market also gets influenced massively by industrial demand. Because of this, you have to be very cautious.
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Ultimately, this is a market that I think given enough time will continue to see a lot of volatility, but I do think ultimately, we could go looking to reach the $28.50 level above. This is an area that has been a major barrier multiple times over the last several years, and of course has seen a lot of selling recently. Underneath, we have the $26 level that is likely to offer support, especially as the 50-Day EMA sits just below there and it will probably offer a significant amount of support.
The shape of the candlestick for the day so far seems to be offering a bit of a hammer, so that of course is a good sign but really at this point in time the silver market as far too overstretched to get aggressive with anyway. Above the $28.50 level, there is a wall of selling just waiting to happen all the way to at least the $30 level. If we were to break above the $30 level, that could initiate a massive short squeeze.
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