Silver crashes 22%: The “Warsh effect” and where to catch the bounce
|The volatility in Silver is nothing short of breathtaking. After spiking to a high of over $120/oz yesterday, the metal collapsed this morning, flushing down to a low of $95.14. That is a nearly 22% haircut in less than 24 hours.
Overbought silver was already screaming "warning". It was priced for perfection. The pin that pricked the bubble? President Trump’s nomination of Kevin Warsh as the new Federal Reserve Chair.
The market was positioning for a dove, but Warsh is viewed as more hawkish. This move signals that President Trump understands a critical reality: to keep the United States' fiscal borrowing costs manageable, the Federal Reserve must command respect. A disciplined Fed Chair anchors inflation expectations and stabilizes the bond market—but in the short term, that is kryptonite for precious metals.
The trade: Levels to watch
With silver dumping, I am not chasing. I am waiting for the chart to hit structural support. There are two specific levels on my radar:
- $88.00 (Trendline Support): This is the first line of defense. It’s an upsloping trendline that has guided price higher since November 2025. I expect a reaction here.
- $80.00 (The Pivot): This is the stronger level. It represents a former major pivot high, which often flips to become support.
Let me be clear—these are not long-term investment buy levels for me right now. The technical damage is significant. I am treating these strictly as day trade or short-term swing trade bounce levels. Get in, catch the bounce, and protect your capital.
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