Silver Price Forecast – Silver Continues to See Volatility

Silver Markets Technical Analysis

The silver market was crushed during the trading session on Friday, after the PPI number came out four times hotter than it was supposed to. This is a complete reversal of the CPI numbers from the day before, which were half of what they needed to be. In general, this is a market that I think continues to see a lot of volatility. And at this point in time, the $30 level underneath, I think is your short term floor. The 50 day EMA reaches towards the $30 level and I think that offers a pretty significant floor.

In general, this is a market that has been very noisy over the last couple of weeks, but very positive. This shot across the bow is exactly what you need to see if you are bullish on silver due to the fact that you don’t want to buy at the top. Imagine buying at the top of yesterday’s candlestick, you’re probably quite upset at this point.

So, with that being said, a little bit of a pullback is a good thing for this market. I have no interest in shorting it. I just want to buy it at a decent price. That’s your job as a trader and that’s especially true with silver due to the fact that it can be so volatile, and of course, it is such a huge contract. Because of this, caution is the better part of valor, but that’s always the case with silver. Either way, this looks like a bullish market just waiting to happen.

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