- Silver markets continue to see a lot of noise and perhaps are a little “stuck” at the moment, as we have recently seen a vicious selloff.
The silver market fell a bit during the early hours on Thursday to test the $80 level, but quite frankly, the $80 level seems to be offering a bit of resilient support. The 50-day EMA is hanging around in the same area as well, so that’s another reason to think that perhaps there’s a little bit of hope here for buyers.
Even if we were to break down below here, I would direct your attention to the larger consolidation area that may be forming. This would be between $70 on the bottom and $90 on the top. In other words, $80 is essentially fair value.
Top Regulated Brokers
Navigating Market Volatility and Long-Term Outlook
The market will continue to be very noisy and choppy, especially after that dramatic day that we had a couple of Fridays ago, as the market dropped about 30% in the flash of an eye. That’s not normal, and that’s the type of thing that spooks traders from jumping back in, and certainly not in large positions.
If we were to break down below $70 again, I think you’ll probably see more forced selling, perhaps sending silver down to the 200-day EMA. Ultimately, this is a market that I think continues to see more hesitation, and if you are longer-term bullish, these dips do offer buying opportunities.
I think ultimately silver probably finds a bid, but it’s got to find its floor in the first place. The floor at one point was $12; it clearly won’t be $12 again, but it could be $50, and that’s what you need to be cautious about. Leverage is best avoided, at least in massive amounts, as the market is definitely in a state of flux.
We'll see whether or not we can find enough momentum to go higher, but as things stand right now, I would assume we're probably entering a sideways market.
Ready to trade our daily forex analysis and predictions? Here are the best Silver trading brokers to choose from.