Short-term rallies could happen in silver, but I think we still have a long way to go before we get overly bullish again.
Silver
Silver has initially fallen during the trading session on Tuesday as traders continue to look at the $70 area as a potential floor in the market. It's experiencing quite a bit of force liquidation as of late as investors ran to cash amid a broader market flush with risk appetite and of course silver will not have avoided that.
Despite the escalating Middle East conflict, which typically would bolster metals, precious metals have been destroyed by a resurging US Dollar and a spike in the 10-year treasury yield as high as 4.39%. This makes higher yields much more attractive because it raises the opportunity cost of holding a non-yielding asset such as silver while the market being highly liquid makes it a target for traders to cover margin calls elsewhere. Keep in mind, a lot of traders out there are heavily margined in multiple markets at the same time so they have to dump where they can.
TECHNICAL LEVELS AND FUTURE MOMENTUM
That being said, if we were to rally from here, I think a short-term bounce does make a certain amount of sense, but you have to keep in mind that the $80 level is an area that's been important. It also features the 50-day EMA and therefore there's probably a lot of noise there.
If we were to turn around and break down below the lows of the Monday session, that would by extension break down below the 200-day EMA, opening up a move down to $50. It's not really what I'm expecting right away, but it is something to keep in the back of your mind. Short-term rallies probably are likely, but I don't know if they're trend changing.