Silvermarkets have shot straight up in the air during the course of the trading session on Tuesday as we continue to see a lot of panic in the precious metal sector. At this point, you cannot chase the trade because this is a massive move in silver. Silver will eventually fall, and in fact, it could even lead to some type of pullback in the gold market. Keep in mind that silver is highly manipulated, as several banks have been busted for doing exactly that. That being said, it is a bit difficult to imagine that this market continues this type of momentum anyway.
SILVER Video 09.03.22
Silver markets tend to be very volatile, so at the very least you need to keep your position size relatively small. I would anticipate that you should get an opportunity to pick up a little bit of value given enough time, so wait for some type of pullback in order to get involved at this point if you are not already at this point. You simply cannot chase this trade, and therefore I think it is a situation where you need to find lower levels to get involved in.
The $25.50 level is going to be a major support level, and therefore it is likely that we will see buyers in that general vicinity. The markets have gotten a bit crazy at this point in time, so trading them will be very difficult. The most important thing you can do is protect your account by using a reasonable position size. The size of the candle leaves no doubt as to the directionality of the market, but you cannot be a chaser here.
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