Silver Price Forecast – Silver Continues to See Volatility as We Drop on Wednesday

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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