The silver market continues to see a lot of noise, as the risk appetite continues to see a lot of wild swings. In this environment, expect a lot of volatile moves.
The silver market was very noisy during the trading session on Thursday as we continued to see a lot of volatility. The $90 above is I think a ceiling at the moment, and it is worth noting that silver is not necessarily a safety asset. If we were to break above the $90 level, then it opens up the possibility of a move to the $95 level, possibly even the $100 level.
Support Levels and Future Market Trends
Short-term pullbacks I think still offer support near the 50-day EMA and the $80 level. I do think that probably comes into play. Silver is a very volatile market and at this point in time volatility can be found anywhere, quite frankly. So I think buying the dip probably still works, but you need to do so with a very small position size because quite frankly we could get something across the headlines that just rocks the market in either direction.
Top Regulated Brokers
Silver of course is a smaller contract volume-wise than gold, so it does have a stronger move via panic. Ultimately, though, I think this is a situation where we are still in a buy on the dip scenario despite the fact that we got a complete collapse several weeks ago. Ultimately, I do think we eventually see silver test that is $100 level, but that could be weeks maybe even months down the road. If we were to break down below the $70 level, that would change the entire trend, and we'd probably could collapse towards the $50 level. I don't see that happening at this point, but it is something to keep in the back of your mind.
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