- Silver continues to be very noisy during the trading session on Friday, as we look at the 70-dollar level as one of the most important levels on the chart.
Silver
Silver continues to be very noisy during the trading session on Friday, as we look at the 70-dollar level as a potential floor. All things being equal, this is a market that I think you need to be cautious with because it is very likely to remain volatile.
After all, we've seen a lot of upward pressure in this market and basically a one-way run to the upside. With that being the case, I think you have to look at this as a risk suppression first type of trading. In other words, if you do choose to get involved in silver, it's prudent that you monitor your position size quite closely.
Monitoring the Potential Floor
The market seems to be one that is hanging on to the 70-dollar level as some type of floor. If we were to break down below there, then we could see silver crash pretty significantly. That doesn't mean that I would be shorting the market; what it means is I'd be very cautious, and if I were already in the market, I would be getting out.
Top Regulated Brokers
Again, position sizing is crucial, and we do have an area above the 70-dollar level that looks like it is attracting a lot of inflow in both directions. So, if that's going to be the case, then I think you have a situation where we may actually go sideways for a minute.
If that's going to be the case, that could also work off some of the excess froth. The excess froth from the move higher definitely needs to be worked on, and if that takes a few weeks, so be it. I think the silver market is more likely than not going to slow down a bit, but that doesn't necessarily mean that we roll over. Right now, I think the most likely outcomes are that pullbacks get bought, but cautiously.
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