Key Support Levels and Holiday Liquidity
Now, I think there’s plenty of support underneath at the $60 level, and I’m not necessarily looking at this as an opportunity to find value. With this being the case, the $60 level I think is crucial. If we were to break down below there, it would be a very negative turn of events.
It’s also worth noting that there’s a gap from Friday of last week that has yet to be filled, and that could send this market down to the $64 level. I’m not a big fan of necessarily getting aggressive here.
We are heading into a 3-day weekend in the United States, and with the Juneteenth celebrations on Friday, that means the markets won’t be open the entire day on Friday. There’s just some outside early electronic trading, not the main liquidity that we’re used to seeing. So, some of this might just simply be people taking their gains and going home for the weekend as the holiday can expose you to big losses suddenly.
I do think there are plenty of buyers underneath. I’m not willing to short this aggressively, but it does look like it could drift a little lower at this point, with the overall weakness in the silver market.
