Silver Price Forecast – Silver Continues to Show Massive Volatility

Silver Markets Technical Analysis

Silver absolutely plummeted during the trading session on Friday after the jobs number came out hotter than anticipated. It appears that traders are banking on the idea that the Federal Reserve will have to keep monetary policy tighter for longer, and therefore it could put downward pressure on metals.

Silver, of course, is extraordinarily sensitive due to the fact that it is a volatile market to begin with. Furthermore, silver also plays second fiddle to the gold market. So therefore, you need to pay attention to gold before silver because if gold rallies that could give you a heads up with silver.

If we can recapture the $30 level, that would be a very bullish sign, but we have just wiped out two days of recovery in very short order. Underneath we have the 50-day EMA, which sits just above the $28.50 level, an area that previously had been massive resistance. Market memory comes into the picture as the market could find buyers trying to find value in that area.

That being said, hotter than anticipated jobs number certainly has people worried about the monetary policy out of Washington DC, but whether or not this changes the trend is a completely different question altogether. After all, this is a market that runs solely on momentum half the time, and it still has a lot of upward momentum. With this, I think you are still looking for buying opportunities either above $30 or somewhere a little bit lower, which is followed by a bounce. If we were to break down below the $28 level, I believe the uptrend is over.

For a look at all of today’s economic events, check out our economic calendar.