- Silver continues to defend the $50 area after multiple intraday breakdowns, reflecting persistent underlying buying.
- Momentum has weakened, raising double-top concerns, but reclaiming $51.50 could open a move toward $54 while $47 remains critical support.
Silver initially fell during trading on Monday to break down below the $50 level yet again, as we have seen three attempts in a row to break this level. But just as we saw on Friday of last week, on Monday of this week, and now again on Tuesday, it seems like there are plenty of buyers underneath that will continue to try to support this market.
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Silver Lost Some Volume
That being said, it'll be interesting to see how this plays out because, of course, silver had been so strong previously, with a lot of momentum and volume, that it looked like it was going straight to the moon. Eventually, we broke down from the $54 level, and volume really cratered as we fell to the $47 level.
The $47 level is an area that has proven itself to be supported. It was important multiple times in the past, so it's really not a huge surprise that we saw the market bounce from there. The problem, of course, is that the volume was much lower during the second swing higher, and now we have to ask questions about whether or not we just formed a double top.
I think this is a scenario where you have a lot of questions asked of the trend, but the fact that we are pushing back at the $50 level is a good sign. If we could recapture the $51.50 level, then I think silver makes a run towards $54, where it had just peaked. If we break down from here, $47 must hold, or the market falls apart. And I think now, the trend changes. Regardless, this is a very dangerous market right now, but it does look like it's at least trying to recover.
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