- I have noticed that Silver continues to see a lot of volatility.
- That in and of itself is not a huge surprise. After all, silver is an extraordinarily volatile asset under the best of circumstances.
- However, it's worth noting that the $30 level underneath is something that is worth paying attention to as it is a large, round, psychologically significant trigger and an area where we have seen a lot of previous resistance.
The 50 day EMA sits underneath there, but it is racing towards that $30 level, and therefore I think you've got a situation where plenty of buyers are going to get involved and try to lift the silver market. If we can break above the $31.50 level, then the market could go looking to the $32.50 level. After that, silver is likely to continue to be a asset that a lot of people are paying close attention to due to the fact that it is not only a protective asset in the sense that people use it in times of concern, but it's also a risk on asset.
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So, it's a little bit of both. Remember, silver is also an industrial metal. And that is something that you could not ever forget at this point. So, with this being said, I think we've got a situation where you are buying on the dip still, but you have to keep your position size reasonable. The reasonable sizing, of course, is going to be different for everybody.
But let's put it this way you just don't want to be a situation where traders find themselves in a huge silver position that's gone wrong. It can happen very quickly in this market. So, by all means, keep your position size something that lines up with your risk tolerance. This could be a very bumpy ride going forward as the market is one that can be troublesome at times.
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