Silver Price Forecast – Silver Gets Hammered After PMI

Christopher Lewis
Updated: Jun 21, 2024, 16:11 GMT+00:00

Another panic move in the silver market as the PMI numbers on Friday came out hotter than anticipated. That being said, there also are a lot of reasons for silver to rally, so I expect that this will just be yet another noisy session.

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Silver Markets Technical Analysis

Silver plunged during the trading session on Friday as we are now below the $30 level again with PMI coming out hotter than anticipated. Both manufacturing and services PMI numbers in the United States were better than expected and therefore we have seen quite a run back to the US dollar. But really at this point I don’t know if it’s going to change things in the longer term. I think you’ve got a situation where market participants will continue to look at this through the prism of perhaps buying a bit of value. I mean, after all, silver is still very much in a strong uptrend.

However, it is worth noting that it’s Friday and Friday is a major options expiration day, and it could have money just kind of flowing around somewhat wildly. So, with that being the case, I think you will continue to look at this as a potential buying opportunity on dips, but you are going to have to be cautious with your position sizing as the market of course is extraordinarily volatile as per usual. Silver is volatile under the best of circumstances quite frankly, and I just don’t see that changing anytime soon.

So, with that, I look at this through the prism of a market that will continue to offer the possibility of finding value and if you can ride through all of the noise, you are more likely than not going to end up positive. However, you also have to keep an eye on the fact that we could drop down to the 50 day EMA or the $28.50 level again, but as I look at this, this is just post the reaction, it seems to be short lived. Therefore, I think we probably turn around and rally again.

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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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