Silver Price Analysis – More Pain in the Silver Pits

NEW YORK (February 5) The silver market has struggled with the $90 level, and we have plunged almost 10% as I record this video.

This is a market that I think is going to continue to see a lot of hesitation to go to the upside. If we break down below $70, then I think we have a situation where this market could unwind quite a bit further—maybe down to the 200-day EMA. Regardless of what you’re doing here, you need to keep your position size small.

Risk Management and Volatility

The last two days have been a great example of why you can’t just jump in with both feet. If we were to break above the $90 level, then it opens up the possibility of a move to the $100 level. But it’s really difficult to imagine a market that has seen this type of action just simply taking off to the upside again.

Yes, it may go higher over the longer term, but we need at the very least some sideways action to get a bit of stability going. I do believe that silver is probably going to continue to struggle overall. I would anticipate that a lot of the retail traders out there have been wiped out already. They probably aren’t even playing this game.

With this, I’d be very cautious, but I do recognize that the only way to take care of yourself in this market is to make sure that you’re not overleveraged, regardless of the direction you pick. You could short right here and then turn around and see a 5% jump right in your face. So, you have to be very cautious when trading in this environment.

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