Silver fell on Tuesday as traders took profits after Monday’s rally of more than 8%. It traded near $80.96, down about 3.47% on the day, even though the US Dollar was weaker and US Treasury yields were lower. Silver hit a record high of 121.66 on 29 January after a sharp climb. It then dropped by nearly 47% in a fast correction.

Volatility And Near Term Outlook

Even after the rebound, price is still more than 33% below the January peak. The recent swings have kept volatility high and could lead to a period of sideways trading below $90.00. On the daily chart, Silver is slightly above its 50-day simple moving average at $78.90, which is acting as near-term support. The 50-day average is still above the 100-day average, so the broader trend remains positive. If price breaks below the 50-day average, the next support levels are $70.00 and the 100-day average near $64.28. On the upside, price needs a break above $90.00 to regain bullish momentum. RSI is near 46, which is neutral. ADX is 44.96, and ATR is around 10.07, which shows very wide daily ranges. Because volatility is still extreme, we think silver is moving into a consolidation phase. After the sharp moves seen in January 2026, the market is starting to calm, but daily ranges are still large. This means new positions should be managed carefully, since sudden moves can still happen.

Options Strategy Considerations

The high Average True Range, near 10.07, suggests options premiums are very high. This makes buying standalone calls or puts expensive. It also increases the risk of losses if volatility falls, even if price moves in the right direction. We think selling premium, with clearly defined risk, may be a better approach in the coming weeks. This kind of unstable price action—a steep rise to $121.66 followed by a sharp drop—has happened before. A similar (but smaller) move occurred during the retail-driven “silver squeeze” in 2021, which also led to a spike and then a volatile pause. In the past, moves like this are often followed by choppy, range-bound trading as the market stabilizes. On fundamentals, the long-term bullish case still looks intact, especially after reports last year pointed to an ongoing structural supply deficit. The Silver Institute, for example, projected in 2025 that the market was heading for its fifth straight annual deficit. This support may cause long-term investors to treat dips as buying opportunities. With silver holding above its 50-day average near $78.90 but facing resistance near $90.00, we see a clear trading range. For derivatives traders, this setup can suit strategies such as iron condors. Selling a condor with strikes placed comfortably outside the $70–$90 zone could allow traders to benefit from time decay and a possible drop in volatility. For traders with a directional view who still want to control risk, vertical spreads can help. If a trader expects the 50-day moving average to hold, they could sell a put spread below $78.90. This limits maximum risk while still collecting premium from elevated option prices. Create your live VT Markets account and start trading now.

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GBP/USD traded at 1.3660 after slipping below 1.3700. It was down 0.2% in Tuesday’s North American session. The pair earlier reached a daily high of 1.3700 before pulling back. US data missed expectations, but the Dollar still recovered from earlier losses. December Retail Sales were flat (0.0% month-on-month) versus a 0.4% forecast. The Control Group fell -0.1% MoM after a 0.2% rise in November.

Us Labour Costs And Inflation Signals

The Employment Cost Index eased to 0.7% in Q4 from 0.8%, according to the BLS. Traders watch this report as a signal for labour costs and a key input into core inflation trends. In the UK, political uncertainty limited Sterling’s gains. Pressure on Prime Minister Keir Starmer increased after the nomination of Peter Mandelson as ambassador to the US. Some speculation suggests Starmer may not finish the year as Prime Minister, while still remaining Labour leader. On the technical side, GBP/USD stayed range-bound. The 1.3650 to 1.3700 area remained the key zone ahead of Wednesday’s US Nonfarm Payrolls. A break above the yearly high at 1.3868 could open the way to 1.4000. A drop below 1.3650 could expose 1.3508 and the 50-day SMA at 1.3471. In 2025, political jitters kept GBP/USD capped below 1.3700, even when US data was weak. Today, the picture is different. Markets are more focused on stubborn inflation than on last year’s political headlines. With GBP/USD now near 1.2750, those old levels matter far less.

How The Backdrop Has Changed

Last year, weak US retail sales and a softer Employment Cost Index pointed to slowing momentum. Now, January 2026 US CPI is still running at 3.1%, keeping the Federal Reserve on alert. Unlike 2025, any sign of US strength could increase expectations that the Fed will keep rates higher for longer. In 2025, concern about the Prime Minister’s leadership drove sentiment. Now, attention is focused on the Bank of England. UK inflation remains sticky at 3.5%, well above the 2% target, which keeps the BoE leaning hawkish. This shift makes inflation, not politics, the larger driver for Sterling. With both central banks in a holding pattern, implied volatility in GBP/USD has fallen. CME’s CVOL readings are down from their late-2025 peaks. Over the next few weeks, this can favour strategies such as selling strangles or straddles to collect premium, based on the view that the pair stays range-bound. This fits the current consolidation, rather than the breakout risk that traders watched last year. The tight 1.3650–1.3700 range from 2025 has been replaced by a new battlefield, likely between 1.2700 and 1.2800. One approach is to use limit orders to fade moves near the edges of this lower range. A break below 1.2700 could point to a larger decline, especially if upcoming US payrolls data comes in stronger than expected. Create your live VT Markets account and start trading now.

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Euro area GDP rose 0.3% quarter on quarter in Q4 2025. This was above the ECB staff projection of 0.2%. Germany, Spain, and Italy performed better than expected, while France posted modest growth. Private consumption supported growth in Q4, and gains were broad across the eurozone. Early 2026 data was mixed. The composite PMI slipped to 51.3 in January from 51.5, but it still points to modest expansion.

Euro Area Inflation Trends

Headline inflation fell to 1.7% year on year in January. This was down from 2.0% in December and below the ECB’s 2% target. Energy inflation dropped to -4.1% year on year from -2.1%, mainly due to base effects. Because of these base effects, the January inflation figure is hard to read. Services inflation also looked weak. Danske Bank expects headline and core inflation to stay below 2% in 2026 and 2027. It describes growth as decent and expects the ECB policy rate to remain at 2.0%. Overall, the euro area ended 2025 stronger than expected. GDP growth of 0.3% beat forecasts, driven largely by solid consumer spending in Germany and Spain. However, early 2026 indicators, such as the January PMI easing to 51.3, suggest the pace may be cooling a little. The key point is the drop in inflation to 1.7% in January, which is now below the ECB’s 2% target. Recent Eurostat data supports this move. Core inflation, which excludes energy and food, also fell to 1.9% last month from 2.2% in December. Weakness—especially in services—reduces pressure on the ECB to respond.

Trading And Strategy Implications

Based on this data, the ECB is likely to keep its policy rate at 2.0% for the near term. It held this stance throughout 2025. If rates stay stable, implied volatility in interest rate markets may be too high. We may want to use strategies that benefit from lower volatility, such as selling strangles on near-term Euribor futures. The rate gap between the eurozone and the United States may also limit euro strength. The Federal Reserve is holding its rate at 3.0%. This week, EUR/USD is trading near 1.0750. One way to express a range view is with FX options, such as selling out-of-the-money call options to collect premium. For equities, modest growth and stable, low rates are generally supportive, but they do not point to rapid gains. The Euro Stoxx 50 is up about 3% since the start of the year. A covered call strategy may fit this backdrop, as it can generate income while still allowing participation in moderate upside. Create your live VT Markets account and start trading now.

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Pan American Silver Corp. (NYSE: PAAS, TSX: PAAS) is a silver producer with mines and exploration projects across the Americas. It also produces gold and other base metals. On the monthly Elliott Wave chart, wave ((II)) is said to have ended at $5.70. Wave (I) then climbed to $40.11, and wave (II) later dropped to $12.16.

Monthly Elliott Wave Structure

Within wave (III), wave I reached $28.60 and wave II pulled back to $20.55. Wave III then extended to $69.99, followed by wave IV down to $52.16. The analysis says that as long as $5.70 holds, pullbacks may unfold as 3-, 7-, or 11-swing moves. These moves are treated as corrections within a larger uptrend. On the daily chart, the move that starts on 28 February 2024 begins at $22.08. Wave I ends at $28.60, and wave II returns to $22.08. Wave ((1)) rises to $42.57 and wave ((2)) falls to $33.08. Wave ((3)) reaches $55.85, wave ((4)) dips to $49.61, and wave ((5)) peaks at $69.99.

Daily Chart Levels And Options Framing

Wave IV then finds support at $52.16. The outlook keeps $22.08 as the key level, with 3-, 7-, or 11-swing pullbacks again used as the main reference. Looking back at the 2025 structural analysis, the view was that Pan American Silver was in a long-term uptrend and that pullbacks could offer buying chances. That view has held up: the stock found support and now trades well above those correction lows. This strength also matches the spot price of silver, which has been consolidating for the past few months near $32 an ounce, a level that has been major resistance in the past. For derivatives traders, this supports a bullish bias, which could make long call options appealing in the coming weeks. The key event to watch is a clear break above the prior high at $69.99, which could spark a fast move higher. By buying out-of-the-money calls that expire within the next quarter, traders can target this upside while keeping risk defined. A more conservative approach is to sell bull put spreads. This strategy can profit if the stock stays above a chosen price level. It also fits the core idea that any corrective dips should be limited and should find support. Since the large 2025 correction ended at $52.16, traders can consider strikes above that level for the short put, aiming to collect premium while expecting stability or further gains. This view is also supported by broader trends that have developed since last year. The Silver Institute’s latest data from late 2025 showed industrial demand for silver rose by more than 12%, driven mainly by growth in solar and electric vehicle production. Pan American Silver’s Q4 2025 earnings report also beat expectations, helped by higher realized metal prices and better operating efficiency at its key mines. The main risk is the long-term pivot at $22.08. This level has been the base of the bullish structure since 2024. Any trades should be managed with this level in mind, because a break below it would invalidate the current uptrend view. Traders should watch price closely and adjust if the stock fails to hold its recent support areas. Create your live VT Markets account and start trading now.

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Vertiv Holdings Co. is a US multinational that provides infrastructure and services for data centres, communication networks, and commercial and industrial sites. It is in the Industrials sector and trades on the NYSE as VRT. The analysis outlines a bullish Elliott Wave scenario. It projects a move into **$215.50–$232.10** to complete **wave I**, as long as price stays above the **12.17.2026** low. After reaching that target area, it expects a corrective phase. On the weekly chart, the text says **(I)** ended at **$155.84** in January 2025 and **(II)** ended at **$53.60** in April 2025. It then maps out wave I of **(III)**, with **((1))** at **$153.50**, **((2))** at **$118.70**, **((3))** at **$202.45**, and **((4))** at **$147.82**, with **((5))** still in progress. It lists internal levels: – Within **((1))**: **(1)** $70.35, **(2)** $60.67, **(3)** $133.52, **(4)** $119.10, and **(5)** $153.50. – Within **((3))**: **(1)** $152.45, **(2)** $133.85, **(3)** $184.44, **(4)** $162.68, and **(5)** $202.45. – Within **((4))**: **(A)** $158, **(B)** $189.66, **(C)** $147.82. We see Vertiv (VRT) in the final stage of a long uptrend that began last year. The stock is expected to make one more push into the **$215.50 to $232.10** range in the near term. This bullish view remains valid as long as price holds above the key low from **December 17, 2025**. This technical view is supported by strong fundamentals. Demand for data center infrastructure continues to rise. Reports from January 2026 said capital spending on data centers is expected to grow another **18%** this year, mainly due to AI. This follows the 2025 trend, when the stock gained more than **200%** on similar AI-driven news. Current price action is forming a **diagonal pattern**. This pattern often appears near the end of a major move and can signal that the trend is nearing exhaustion. One key signal to watch is **momentum divergence**: price makes a new high, but indicators like RSI do not. That would suggest weakening upside momentum and increase the odds of a larger correction. For derivatives traders, this points to cautious optimism over the next few weeks. Short-dated call options or **bull call spreads** with **March 2026** expiries may help capture a final rally toward the target zone. Since implied volatility has risen to a four-month high, spreads may help reduce the cost impact of pricier options. As VRT nears **$215.50**, the focus should shift toward planning for a reversal. Traders could start preparing to buy **put options** or use **bear call spreads** to benefit from an expected corrective drop. After that larger pullback, a better long-term buying opportunity may emerge.

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Danish inflation fell to 0.8% year-on-year in January, down from 1.9% in December. The drop was mainly due to a cut in the electricity tax to the EU minimum. The tax fell from 90 øre per kWh (incl. VAT) to close to 1 øre per kWh (incl. VAT). The EU minimum is also listed as 0.8 øre per kWh. Denmark’s EU-harmonised inflation rate was 0.6% in January. The eurozone rate was 2.3% in December.

Drivers Of The Inflation Drop

Goods prices were 1.3% lower than a year earlier in January, while service prices were 2.7% higher. Higher service prices kept overall inflation above zero, even after the electricity tax cut. More tax changes are planned for July. Taxes on items such as coffee, chocolate, and sugar products are set to be removed. Inflation of around 1% this year is linked to a rise in purchasing power of about 2% for most people. We are still seeing the effects of last year’s fiscal policy changes. The government’s electricity tax cut in early 2025 pushed inflation down to 0.8%. Inflation was then kept low by further tax cuts in July of that year. The latest data for January 2026 shows inflation remains subdued at 1.1%, well below the most recent Eurozone flash estimate of 2.5%. As expected, this low inflation has helped boost consumer spending. Data from Statistics Denmark shows retail sales volumes rose 2.8% year-on-year in the final quarter of 2025. This supports the view that real wage growth is driving consumption. Traders may consider long positions in OMX Copenhagen 25 index futures, or call options on consumer discretionary stocks that could benefit from stronger purchasing power.

Implications For Rates And The Krone Peg

The key issue is the widening gap between Danish and Eurozone inflation. This difference can put pressure on the Danish krone’s peg to the euro. Danmarks Nationalbank is expected to put the currency peg first. With the DKK showing strength, the central bank has more room to adjust interest rates. In similar periods in the past, it has cut rates to weaken the currency. If a rate cut is used to support the peg, it may make sense to position for lower short-term Danish interest rates. This could include buying Danish government bond futures or using interest rate swaps. Greater focus on the central bank’s policy may also raise volatility in EUR/DKK, which could make FX options useful in the coming weeks. Create your live VT Markets account and start trading now.

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Gold traded near $5,035 on Tuesday after briefly slipping below $5,000 in early Asian trading. Trading was quiet. Rising global stocks pressured prices, but a weaker US Dollar and lower Treasury yields helped limit the downside. Gold is roughly 10% below its late-January high near $5,600, after a drop of about 21%. Traders largely ignored the US Retail Sales report. Attention now turns to the delayed Nonfarm Payrolls report on Wednesday and CPI on Friday.

Key Data And Market Drivers

US Retail Sales were flat (0.0% month-on-month) in December, below expectations of 0.4%, after a 0.6% rise in November. Sales rose 2.4% year-on-year, down from 3.3% previously. The Control Group slipped 0.1% after a 0.2% gain. China has urged domestic banks to cut exposure to US Treasuries, according to Bloomberg. The 10-year US yield hovered near 4.18%, while the DXY was around 96.90 after hitting a one-week low. Markets are pricing in nearly 50 basis points of rate cuts this year. Economists expect 70K US jobs added in January, up from 50K in December. US-Iran tensions remain elevated, and US ships were advised to stay “as far as possible” from the Strait of Hormuz, Bloomberg reported. On the charts, RSI is near 56 and ADX is around 13.5. Resistance sits at $5,050–$5,100, while support is near $5,000. Central banks bought 1,136 tonnes of gold worth about $70 billion in 2022. Gold is consolidating around $5,000 after a sharp correction, and traders appear cautious ahead of major data releases. Volatility is still high, which has pushed option premiums up. In this type of market, defined-risk option-selling strategies can be more attractive than buying options outright.

Options Strategies Into High Volatility

The long-term case for gold remains supported by concerns about currency debasement. Central banks set records for gold purchases in 2022 and 2023 as a hedge against rising US debt, which has now exceeded $40 trillion. This ongoing official demand can help support prices, which makes aggressive bearish positions riskier. Expectations for Federal Reserve rate cuts are also supportive. With markets pricing nearly 50 basis points of easing, the opportunity cost of holding a non-yielding asset like gold falls. In this environment, deeper pullbacks can look like potential buying opportunities. Over the next few weeks, one approach is to sell out-of-the-money put spreads with strikes below the key $5,000 support level. This strategy collects premium while taking a cautious bullish-to-neutral view, using both elevated volatility and strong psychological support. The trade profits if gold stays above the short strike through expiration, which fits the current technical and fundamental setup. For traders who expect the range to hold, a bear call spread above the $5,100 resistance zone is another defined-risk option. It takes advantage of high option premiums and profits if gold fails to break higher in the near term. This offers a way to fade upside momentum without taking unlimited risk. With Nonfarm Payrolls and CPI approaching, implied volatility is likely to stay elevated. That makes long straddles or strangles a costly way to trade a breakout. A more cautious approach may be to wait for the data. Volatility often falls after major releases, which can favor the credit spread strategies discussed above. Create your live VT Markets account and start trading now.

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TeraWulf (NASDAQ: WULF) is a Bitcoin mining and technology company. This article reviews its weekly Elliott Wave pattern and the current breakout setup. From the 2023 low, the share price formed a three-wave rise. Wave I ended at $9.30, Wave II dropped to $2.06, and Wave III climbed to $17.05. Wave IV then finished at $10.47. The price is now moving higher in Wave V of (I), with a target range of $18.6–$21.1. To keep this setup valid, the price must stay above the December 2025 low of $11.13. A move below $11.13 would weaken the current bullish structure. After Wave (I) ends, the analysis expects a larger Wave II pullback. After that, it anticipates a return to the weekly uptrend in Wave (III). The strategy focuses on entering after corrective pullbacks. It highlights 3-, 7-, or 11-swing corrections and a “Blue Box” tool used to spot likely reversal zones. Based on the current structure, TeraWulf appears to be continuing its fifth-wave rally from the $10.47 low. This move also has support from Bitcoin’s push above $95,000, helped by steady institutional inflows into spot ETFs, which topped $5 billion last month alone. The near-term path still points to the $18.60 to $21.10 target zone in the coming weeks. For derivatives traders, this may create an opportunity to use call options to target the expected final move higher. Given the target zone, call options with $20 or $22.50 strikes and March or April 2026 expirations could provide leveraged exposure to the rally. Traders should also watch for fading momentum as the stock reaches the target area. As price moves into the $18.60–$21.10 range, the analysis suggests Wave (I) could top out, followed by a large corrective pullback. Traders may want to prepare to shift tactics, potentially using put options once the uptrend shows clear signs of exhaustion. This larger correction, expected later this year, could set up the next major buying opportunity. The bullish outlook stays intact as long as the stock holds above the key $11.13 low from December 2025. A break below this level would invalidate the current wave count and suggest a deeper correction is already underway. This price level is important for risk management on any long positions. It also helps to keep the bigger picture in mind: mining stocks have rallied strongly since the 2024 Bitcoin halving. TeraWulf’s 2025 performance reflected that trend, though high network difficulty is still a risk to monitor. The current setup continues that powerful move, which now appears to be nearing a temporary peak.

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US business inventories rose 0.1% in November, below the 0.2% forecast. This points to slower stock-building by firms during the month. It follows earlier inventory gains and could influence near-term production plans.

Implications For Orders And Growth

A smaller inventory increase can affect how companies place new orders and manage supply. It can also influence estimates for quarterly economic growth. The November 2025 report, showing inventories up 0.1%, was an early warning sign. It suggested businesses were seeing weaker demand than expected and were reluctant to add stock. We now view it as the start of a cooling trend that has continued into the new year. That trend was reinforced by last week’s data. January 2026 retail sales fell 0.4%, missing expectations for no change. This supports the idea that last year’s inventory caution was justified, as consumer demand is softening. Markets are now pricing in a higher chance of an economic slowdown over the next quarter. In the coming weeks, we are taking a more defensive stance by buying put options on broad market indices such as the SPX. This can help protect against a market drop if companies issue weaker earnings guidance. We are also buying puts on consumer discretionary ETFs, since these firms are most exposed to a pullback in spending.

Rates Volatility And Hedging Positioning

Weaker economic data also shifts the outlook for interest rates and makes a Federal Reserve rate cut later this year more likely. For that reason, we are buying call options on 2-year and 10-year Treasury note futures. These positions can gain if bond prices rise as investors anticipate a more supportive Fed stance. Historically, similar inventory slowdowns have often come before higher market volatility. In 2019, for example, inventories softened before the VIX began a steady rise from its lows. As a result, adding long volatility exposure through options on the VIX index may be a sensible hedge for the next few weeks. Create your live VT Markets account and start trading now.

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Norway’s stronger-than-expected inflation has supported the Norwegian Krone and raised questions about any further easing from Norges Bank. Front-end yields moved higher after both CPI and core inflation came in above forecasts. EUR/NOK is trading near key support. Last week’s low was 11.3610, and the pre-Liberation Day low was 11.2614. The move follows the inflation surprise and the shift in rate-cut expectations.

Inflation Surprise Lifts Krone

CPI rose to 3.6% year on year in January, up from 3.2% in December, versus a 3.0% consensus forecast. Core inflation rose to 3.4% from 3.1%. In its January statement, Norges Bank said inflation was too high. The article was produced using an AI tool and reviewed by an editor. This jump in Norwegian inflation changes our view. With both headline and core inflation beating forecasts, the market’s expectation of a near-term Norges Bank rate cut is fading fast. We should prepare for a central bank that is more likely to keep rates unchanged, or even signal a hike. For FX options, this supports a stronger NOK versus the euro in the weeks ahead. We should consider buying EUR/NOK puts or using put spreads to target a break below the 11.36 and 11.26 support levels. Higher front-end yield volatility may push option premiums up, which can make defined-risk strategies more appealing. In rates, the rise in front-end yields shows the market is repricing the expected path for Norges Bank. We can use short-term interest rate swaps or forward rate agreements to position for policy rates staying higher for longer. This directly reflects the view that rate-cut expectations were too early.

Positioning For Higher For Longer

We saw a similar pattern in early 2025. Core inflation stayed sticky and well above 4.5% even as the market tried to price in cuts. At the time, Norges Bank held its 4.50% policy rate, and the Krone rallied. That example from last year suggests we should not underestimate the central bank’s resolve again. A tight labor market also supports a more hawkish stance, with unemployment staying below 4% through the end of last year. Focus now shifts to the next Norges Bank meeting in March to see if the message turns more clearly hawkish. Any positions should be planned with that key date in mind. Create your live VT Markets account and start trading now.

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