Silver Price Analysis – Silver Shows Volatile Move in Early Friday Trading

Silver Technical Analysis

Silver markets have pulled back just a bit during the early part of the Thursday session as we continue to see a lot of noisy behavior. At this point, I think you have to look at the $90 level as an area that could come into the picture to offer support anytime we test it.

Now, that being said, you also have to keep in mind that we are extremely overextended at the moment. So, what you’ll notice on the chart is every $10 or so, you see a cluster of action, and I think that continues to be the case. This is a very technical market at the moment, as options traders will continue to be attracted to it.

Too Juicy a Target

I think at this point in time, it’s a market that’s going to desperately try to get to $100 an ounce. It’s just too juicy a target. So short-term pullbacks, I think, will continue to attract buyers into this market in order to pick up what could be, at least in theory, relatively cheap silver.

And this is a market that I think just has a ton of momentum. We may have to go sideways for a minute and collect more buyers, but I just don’t see a situation where you short silver, at least not in this environment. I assume there have been many blown accounts trying that.

We could drop all the way to $80, and we would still be very, very bullish at this point, so be aware, be cautious with your position size. But more than anything else, make sure that you’re not trying to swing for the fences here.

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