Silver Markets Have Wild Ride After CPI

Silver markets initially sold off after the CPI number came out much hotter than anticipated in America, as one would expect. However, markets completely turned around shortly thereafter to do the exact opposite of what would be expected. Because of this, we continue to see a lot of noisy behavior, but it is bullish in general. The $23.50 level has been pierced by silver buyers, and with that being the case it does look like we are trying to go higher. All things being equal, this is a market that looks as if it is trying to reach the gap above. That means that we could go another $0.30 or so, but in this environment, it is difficult to say what will happen.

SILVER Video 11.02.22

The 50 day EMA underneath should be support, just as the 200 day EMA above should be resistance. This is not to say that we cannot break through there, it is just that technical analysis does suggest this. Either way, I think this is a market that is trying to break out and could be rather interesting, but I also recognize that it could also be rather dangerous. Because of this, I would be very cautious with my position size and perhaps if you are bullish look to buy dips, not to pay some type of premium.

Keep in mind that we are still technically in a downtrend even though we have broken through a minor resistance area. Looking at this chart, it is likely that we will continue to see buyers trying to take advantage of this move, but whether or not we can break that major downtrend line is a completely different situation.

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