- It's extremely interesting that after an initial decline, silver is rising early in the trading session on Wednesday, hitting a region that has historically been supported.
- As usual, the market is incredibly erratic. Because of this, you need to be cautious about your position sizing, and make sure that you have stop losses in place at all times.
- This will be especially true if you are looking into futures markets as the ability to size position is a bit limited.
Silver Has Support Underneath That I Am Watching
Looking at the silver market, we can see that although silver did dip a little during the Wednesday trading session, it is now beginning to find some support right above the $22.25 mark, as one could anticipate, and it appears that we will attempt to move higher.
It would seem to be a straightforward consolidation maneuver. That makes a lot of sense, as silver tends to be very choppy anyhow. Remember that because silver is a valuable metal, it will be extremely susceptible to interest rates, industrial demand, and possibly even the concept of geopolitical concerns.
In light of this, I believe that there is a good chance we will witness a little rebound and that the $22 level will hold. Furthermore, the market has undoubtedly shown regard for the region between the $22 and $23.50 levels. Consequently, it seems natural that there is a lot more interest as we get closer to the bottom. Not much, in my opinion, has changed.
And that alone is making me consider being optimistic. Although I don't think silver rockets off like a rocket, I do believe that there will be a lot of back and forth commotion in the market going forward. We might proceed to the $24.50 level, an intriguing and significant big resistance barrier, if we were to break above the $23.50 level.
It is possible that we may fall to the $21 level, which offered even more support, if we were to break down below the $22 level. Thus, given everything else being equal, I do think it makes sense to purchase a little amount of silver based on its current worth. Having said that, exercise caution when determining the amount of your stake because silver may be highly volatile and problematic.
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