Silver Markets Technical Analysis

The silver market has plunged pretty drastically during the early hours on Wednesday as we continue to see a lot of noisy behavior. That being said, I think we’ve got a situation where traders will look at this through the prism of trying to find value. Quite frankly, the US dollar was oversold, so it’s not a huge surprise to see precious metals dropping in the morning as the dollar recovers. But ultimately, when you look at the silver market, it’s also worth noting that the $30 level has caused a little bit of a headache. Obviously, there will be a lot of options players interested in this big figure as per usual.

All things being equal though, I do think that there will be plenty of buyers in this general vicinity and most certainly down near the 50 day EMA. So, it’s probably only a matter of time before value hunters come in and pick up a bit of cheap silver. I have no interest in shorting this market, at least not until we break down below the $28.50 level. Something that I don’t think we’re going to see in the next 24 hours, but it is worth noting that the overall attitude of silver has been bullish, but extraordinarily choppy. I don’t know what changes anytime soon. And the only way that you really can deal with it is by keeping a reasonable position size because the volatility in silver can really cause problems, and protecting your account is paramount.

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