Silver markets have formed a bit of an “inverted hammer” for the week, sitting on top of the $25 level. That of course is a negative looking candlestick, but if we can break above the top of the candle it would send silver looking towards the $28 level. After that, then the silver market could go looking towards the $30 level which of course is a major figure on not only the recent charts, but longer-term historical charts. Quite frankly, raking above the $30 level almost always means that we run towards $50.
SILVER Video 15.03.21
On the other hand, if we were to break down from this level and sliced through the $25 level, the next support level is $24, which I think is a minor support level. At that point, I would not be surprised at all to see the market goes looking towards the $22 level where we have seen a significant amount of support. Breaking below there it kicks off a “M pattern” that could send silver much lower.
Keep in mind that the silver markets are highly sensitive to the idea of industrial demand, not just the bond yields situation that we see in the gold market. With that being the case, this is a market that I think will continue to see a lot of choppy behavior, but I think we have a bigger move just waiting to happen, so once we get that clear break out or break down, I would be all over that trade as I think silver should offer significant gains in one direction or the other.
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