Trading Alert: Silver Rocked On Economic Fear

Silver saw one of its biggest two day draw downs in history when it dumped 13% between Thursday, April 3rd and Friday, April 4th. This fall was in response to economic panic over tariffs levied by President Trump and potential backlash from other countries. Ultimately, the risk of recession went from 50/50 to 80% within days. The S&P 500 fell over 10% during this two day period.

Silver has assumed a more industrial position in the precious metals arena. This means a quick turn toward recession both in the U.S. and abroad would trigger a big selloff in silver. That is exactly what happened.

As a technical trader, the key support level is $26. Should silver dump into this level it warrants a potential swing trade buy. This can be seen in the chart above.