Potential signal:
- On an hourly close below $55 in the futures contract, I am selling and aiming for a $4 move, with a $1.25 stop loss.
- The silver market continues to see a lot of downward pressure, and now finds itself threatening a massive breakdown.
Silver
The silver market is collapsing on Thursday, and we find ourselves at a very important crossroads. For me, the $55 level is a massive support level that I think a lot of people are going to have to keep an eye on.
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If we were to break down below $55, that is a technically negative turn of events, as it's an area of demand going back to the summer. We're in fact seeing silver lead gold lower, which in and of itself isn't surprising. But when you think about what's going on and the massive demand for silver, it is certainly being influenced from the outside.
There seems to be a certain amount of risk appetite destruction
Perhaps due to headlines coming out of Saudi Arabia that diplomats from the United States are being pulled. If that's the case, then we might be heading back to war.
The $55 level was previous resistance back in October of 2025, right before the market launched all the way towards the $120 level. Giving this up would be pretty ugly for silver. Bouncing from here does open up the possibility of a short-term trade, and it is a bit interesting that, for once, interest rates are dropping right along with silver. That just proves that the correlation cannot be counted on 100% of the time.
Part of this is probably just simple bond buying to protect portfolios. The question now is, will we get a bit of a bounce? Long term, I like silver a lot. There's a huge story to be told about silver and copper, as well as some other metals, when it comes to AI data centers, but that's the other wrinkle here.
It does seem like AI is starting to see some problems, and if that's the case, it's probably not going to do much for some of these metals anyway. Ultimately, this is a market that I have to watch very closely here at $55. This is a major level for both the buyers and sellers.
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