Silver Midday Technical Analysis November 1

Silver markets exploded to the upside during trading on Thursday, reaching towards the $14.70 level, but at this point I think it’s likely that we are going to continue to see a lot of noise in this market. I think that we may try to break to the upside but unless the US dollar capitulates, I suspect that we are overdue a short-term pullback. Volumes have been good in the futures pits, so that does of course helps the idea of silver rallying, but I also believe that it is only a matter of time before we get buyers again. Remember, tomorrow is jobs Friday in the United States, so of course there will be volatility in the currency markets anyways.

SILVER Midday Video 01.11.18

The US dollar will be crucial as to where we go next, and I think although we had a nice selloff in the greenback during the trading session on Thursday, markets are about to get really quiet because of the jobs number coming out. With that in mind, I suspect that the next move will be lower, but I’m not looking for a break down. In fact, I think there’s a bit of a “floor” near the $14.50 level regardless what happens between now and the jobs figure. I see far too much in the way of order flow above for a significant break out, especially considering how quickly we moved to the upside. If you were to buy silver now, you are simply chasing the trade.