Silver Markets Form Resistive Candle

Silver markets have shown signs of hesitation during the trading session on Friday after gapping lower and then going sideways. We ended up forming a bit of a bearish harami, a pattern that typically shows a potential for reversal. This would make a certain amount of sense considering just how overbought we have been, but it is also hard to step in front of a moving train like this. Ultimately, I do think this is a market that will eventually pull back, and perhaps go looking towards the $23.50 level again.

SILVER Video 24.01.22

Even if we do take off to the upside, I am very leery of getting aggressively long the silver market, because it is so highly manipulated by a handful of banks. There are a lot of “paper shorts” out there manipulating the market lower over the longer term, and that is something that you simply cannot ignore in this particular market. In fact, that is why you quite often see a major divergence between futures markets and physical markets.

All that being said, it is worth noting that we have seen a massive amount of fear out there, and people are starting to buy “things” again, as the stock market gets hammered. It is also worth noting that the US dollar has a huge part of play in how this turns out, see you certainly need to pay close attention to the overall attitude of the greenback. If we see further strengthening of the US dollar, that will almost certainly work against the value of silver. Obviously, the exact opposite is true as well so keep that in the back of your mind.

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