Silver Price Analysis – Silver Continues to Show Choppy Movement

Silver Technical Analysis

The silver market continues to be very noisy and I also think that the market is trying to sort out whether or not it is going to be able to get free of the resistance that we had seen previously. After all, the market continues to pay close attention to inflation concerns, and those inflation concerns, of course, are centered around energy.

Despite the fact that you are not trading energy this market is something that is very sensitive to what’s going on with any type of peace plan in the Middle East. Ultimately, I think you have a situation where traders will need to see the 4.30 level being broken below in the 10-year to truly take off in the silver market. And what we need for that is a lack of energy inflation, which I think is probably coming as long as the Strait of Hormuz is closed.

It’s a little bit of a push and pull, and of course, it will move on the latest headlines. With that being the case, you have to be very cautious with silver right now. Not that you don’t have to be cautious with silver in general, because quite frankly, it is a volatile instrument to say the least.

Anyway, I look at this as a market that is still very much in consolidation, and I don’t know if that changes anytime soon. As things stand right now, it needs to prove itself, and so far, I don’t know that it has. This is a market that continues to be very dangerous. If you do find yourself getting involved in silver, make sure you do it with a reasonable position size.

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