Silver's recent market movements are still characterized by the tug-of-war between bulls and bears, and in the short term, it is likely to follow a pattern of rising sharply and then pulling back. If the price cannot hold above $78, it will be easy for it to be pushed down when it encounters resistance at $80-$80.5.

Looking downward, the support level is around $73-$73.5, but the real key level to watch is $70. Once the bears break below $70, there are still the 0.618 and 50% retracement levels in the $84-$48.6 range below, which happen to be the areas where we want to build long-term positions. Conversely, if the $70 level holds, silver is likely to oscillate around this area, using time to wear down the bears' patience. Another detail is whether the bears can stabilize around $74; this will directly affect how deep the subsequent decline can go.

How to operate? More conservative traders can wait and consider entering after the holiday; aggressive traders can short during the rally in the resistance zone, as long as the key support isn't broken, and they can try small long positions. Currently, the market is just sweeping back and forth; there's no need to stubbornly hold onto a one-sided view or force a position.