Silver markets have continued to struggle in general as we see a fair bit of pressure anytime we try to bounce back. That being said, the level of $ 22.50 below should be very difficult to break through. Ultimately, if we were to fall below this level, it could lead to massive sell-off in the silver market. It is worth noting that gold is trying to save itself, while silver does not seem to care. This makes some sense because gold is a reactionary metal to inflation, while silver is more of an industrial metal. For this reason, I think we continue to see a lot of divergence between the two metals, so you can’t use one chart to give you an opinion on another.
SILVER Video 02.12.21
If we break through the highs of the trading session, we still have a few long wicks that have reached the $ 23.60 level, so it’s really only when we break through that level that you can argue for the strength. The US dollar would also have to be completely crushed, which is not necessarily the case right now. When I look at this chart, I think there is more than likely going to continue to be a “down rally” situation over the next few days. Keep in mind that Friday is the number of jobs, and of course people will be looking at the likelihood of increased demand. For this reason, it is a market that I think will have to be very careful.