- Silver initially tried to rally a bit during the trading session on Thursday, as it looks like we tried to break above the crucial $51.50 level but failed.
- As I record this video, we are testing just above the $50 level.
- And if you have been paying attention over the last couple of days, I have been talking about these two levels as being crucial.
We have a significant amount of noise in the market at the moment, and I do think that ultimately this is a market that probably continues to see a lot of questions asked of it, as we had just formed a double top, but with decreasing volume. That is not a sure thing. Nothing is a sure thing as far as trading is concerned, but that is a very ominous sign. The question is, will silver hang on?
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US Dollar Could Come Into Play
I do not know if the US dollar is surging overall, and that could eventually weigh upon silver. That being said, a lot of the old correlations are going by the wayside as there are a lot of questions to be asked about artificial intelligence and green technology. The demand for silver is pretty high, but a lot of what we have seen in the market has to do with a short squeeze for physical metal, and demand for physical silver from speculators can be extraordinarily fickle. So we will just have to wait and see how that plays out.
If we can break down below the uptrend line, then we will test the 50-day EMA and then $47. If we break down below $47, I think we are in serious trouble. If we can turn around and recapture the $51.50 level on a daily close, maybe closing at 50 cents higher than there or so, that would be a very bullish sign. As things stand right now, it looks like there is a lot of choppy short-term volatility. So if you are a short-term trader, this might be the place you want to be trading. For a longer-term move, we need more clarity, and it is obvious, based on the fact that this week has featured two hammers, a shooting star, and now a bearish candle, that there are a lot of frayed nerves out there.
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