- During the trading session on Tuesday, we have seen the silver market plunged during the Asian trading session, while eventually turning around during the European and American sessions.
- At this point in time, I think volatility is a bit of a warning shot, which makes quite a bit of sense considering that silver is one of the more volatile commodities out there.
- Because of this, I would be very cautious with my position size, but I also recognize that the $31 level below seems to be a bit of a floor in the market.
This is especially interesting considering that the 50 Day EMA sits right there as well, and therefore I think you’ve got a situation where any dip at this point in time probably opens up for a bit of a buying opportunity given enough time. On the other hand, at the $32.35 level we see a lot of resistance, and I think it is going to be difficult to get above there. However, if we do then I think the market probably goes racing toward the $35 level ultimately, as it has been a major swing high previously.
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Buying Dips
At this point in time, I think a lot of people were going to be looking at this through the prism of trying to find value, which of course means buying silver at lower levels. All things being equal, I think that you continue to see a lot of volatility, but I certainly wouldn’t want to get short of this market at the moment, at least not until we break well below the $30 level. Anything under the $30 level probably has silver selling off quite drastically, but I don’t see that happening right now due to the price action that had occurred during the trading session on Tuesday. While I’m not overly bullish, I do think that it’s more likely that the market breaks higher than lower.
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