In the morning session, gold and silver prices directly plunged at the 84 level, with a single-day decline of nearly 9%. The intensity of this drop is indeed shocking. But I have to be honest—this is not a reversal signal; it’s purely a collective stampede caused by overheated sentiment at high levels.

How to understand this? Previously, gold and silver experienced continuous strong rallies, and short-term profit-taking piled up quite heavily. Once the upward momentum can’t keep up, extreme market conditions like rapid rises followed by quick drops are likely to occur. Plus, with market liquidity already thin, volatility is further amplified, leading to the current trend we see.

From a structural perspective, silver has already shifted from a strong upward attack to a correction and recovery phase, with clear resistance signals above. The best approach at such times is to follow the rhythm and avoid trying to catch the bottom. Going against the trend to buy the dip is just asking for trouble.

Specific trading ideas:

When silver rebounds to the 80-80.5 range, it’s advisable to follow the correction and establish short positions. Set the stop above 81; if it breaks, exit the position. Support levels below are sequentially at 78, 76, and 74.

The core principle is to go with the trend and not against it. If the market indicates a downward move, don’t forcefully buy upward.