Silver markets word noisy during the week, showing a lot of volatility. However, we are essentially at “fair value” based upon consolidation over the last couple of years. Because of this, I’m not expecting much, least not until we get an impulsive move.
Silver markets went back and forth during the week, forming a bit of a neutral candle, with a slightly negative bias. The $17 level looks to be likely to an area that is attractive to traders in general, as it is essentially “fair value”. I think that the market will either breakdown below the bottom of the range for the week and then go looking towards the $16.50 level, or break above the top of the range for the week and go looking towards the $17.75 level.
When you look at the overall consolidation, it extends up to the $18.50 level, and down to the $15.50 level. This is a market that I think continues to be very choppy overall, and I would not be putting money to work until we get a breakout from the range of the week. If we can break above or below the blue box on the chart, that would be a very bullish sign, or negative depending on where we go. At that point, you could become a lot more aggressive. What I would point out is that the stochastic oscillator is a bit overbought, so it is possible that we will see a pullback. Nonetheless, I think that Silver continues to be a very choppy market to deal with, and I prefer to trade silver with physical metal, or at least CFD market so that I don’t have the risk inherent in the futures market which can be a bit expensive.
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.