The silver market has fallen again on Tuesday, as the markets continue to try and deal with the trauma that occurred just a few weeks ago.
Silver
The silver market has fallen quite a bit during the trading session on Tuesday as we continue to look at the $70 level as a major floor. Silver being down by over 6% as we are heading towards the end of the New York session, is not a good look.
The question at this point in time is going to be whether or not the silver market can hang on to $70. If it cannot break above and ends up breaking down below that crucial $70 level, I think it brings in a lot of selling pressure.
On the other hand, if we can bounce from here and go looking to the upside, the $80 level could be your target, given enough time. All things being equal, this is a market that I think is still trying to come to grips with the massive amount of destruction that had been caused a couple of Fridays ago.
Market Sentiment and Technical Indicators
That type of trauma doesn’t suddenly disappear and with that, I think the best-case scenario is that we see a bit of sideways action in this market.
If we break down below that $70 level on a daily close, though, we could be looking at a return to the 200-day EMA, which is obviously an indicator that a lot of people pay close attention to, closer to the $56.60 level.
Over the longer term, I anticipate that we will have to work off some of the fear and, quite frankly, this market would need to become a lot more boring, I think, to present a real opportunity. Short-term traders may try to buy here, but again, if we break down below $70, things get ugly.
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