Monday we saw the silver market continue last weeks slide, posting a new recent low of 21.925 in the January contract before turning back positive for the week on Tuesday. The second half of the week we saw the move higher hold but not extend as the market holds around resistance. The silver was making new highs for the week with continued weakness in the dollar but less than desirable jobs numbers pressured silver off its highs early in today’s session. The bulls are in control with the inflation outlook increasing with the continued move lower in the US dollar and the Fed showing no signs of raising rates in the near term. A stimulus package getting passed would also support the silver market here. Since the second half of September January silver has been trading in a sideways range of 22.50 and 25.00 and although the market was trending higher this week it will take positive fundamental news to push the market through the 25 level and back to resistance at 27.50. I still believe the longer-term outlook for silver is to the upside but there will most likely be some back and forth along the way. The market would need to hold support of 23.45 and 22.50 to avoid another washout to the downside.

Silver Jan ’21 Daily Chart
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Tyler Herrmann

Senior Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
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