Silver video 02.02.21.
Silver withdrawal turns into panic
Silver has taken a strong bearish push and is currently trying to settle below $ 26.70 as retail traders rushed out of squeeze games.
Meanwhile, the US dollar is gaining ground against a large basket of currencies, putting additional pressure on silver and gold prices today. The US dollar index recently managed to break through resistance at 91.10 and continues to move higher. The next significant resistance level for the US dollar index is at 91.50. If the US dollar index passes the test of this level, silver will likely fall.
Gold retreats after an unsuccessful attempt to move above the 50 ERA at $ 1,865. Currently, gold is testing the closest support level at $ 1830. If gold drops below $ 1,830, it will gain additional bearish momentum and head towards the $ 1,800 level which will be bearish for silver and other precious metals.
The gold / silver ratio has rebounded from recent lows at 62.50 and is currently trying to settle above 67.50. The closest material resistance level for the gold / silver ratio is near 69.50. If the gold / silver ratio passes the test of this level, silver will come under additional pressure.
Silver took a strong push to the downside as retail traders rushed out of the squeeze shorts. Currently, silver is trying to settle below the closest support level at $ 26.70. If this attempt is successful, the silver will move to the next support level at $ 26.30.
A successful test of the support at $ 26.30 will pave the way for testing the next level of support which is at the 20 EMA at $ 26.15.
On the upside, the previous support at $ 27.00 will likely serve as the first level of resistance for silver. A move above this level will push the silver towards the next resistance level at $ 27.50. If the silver goes above this level, it will pass the test of the next resistance at $ 27.75.
It should be noted that silver trading is very active today, so traders should note that there are many levels that can be simply ignored if the current panic continues.
For an overview of all of today’s economic events, check out our economic calendar.