Silver Price Forecast – Silver Continues to See Volatility

Christopher Lewis
Published: May 22, 2024, 13:45 GMT+00:00

The silver market has been very volatile over the last few days, as we are currently trying to work off some of the excess froth from the move higher that got us here. Ultimately, you need to be cautious with the position size more than anything else at this point in time.

In this article:

Silver Markets Technical Analysis

You can see that we have gone back and forth there in the course of the early hours on Wednesday as we continue to bounce around. The market has certainly been overbought for some time as we are above 70 in the relative strength index and that generally means that you are getting overbought.

A pullback at this point in time should end up fighting plenty of buyers though, due to the fact that it is so bullish and of course breaking above the $30 level is a big deal in the silver pits. So, with this, I think you will continue to have more of that buy on the dip attitude come into the picture and really send this market in one direction to the upside.

This is the type of trade that ends in tears though, because eventually it gets completely wiped out. But right now it certainly looks as if the buyers are willing to jump in and take advantage of every little bit of value that they can find. The $30 level of course could be support, and then again at the $28.50 level. However, like I said, we may just simply go sideways. You have to work off the froth somehow, and at this point in time I think you’ve got a situation where silver looks very strong, but it also looks a little bit dangerous to jump in with a huge position at least at this point in time.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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