Silver Price Forecast – Silver Continues to Struggle in Traffic

Silver Markets Technical Analysis

Silver has been a bit back and forth in the early hours of Wednesday as we continue to see a lot of noisy behavior. The market is still struggling with the idea of breaking above the $32.35 level. And I think that will continue to be the way going forward as the market is starting to just simply try to settle in a range between $31 underneath and $32.50 above.

Silver, of course, is an industrial metal as well as a precious metal, so it does make a certain amount of sense that we will see this market bounce around a bit, but I also recognize that this is a market that is extraordinarily volatile under the best of circumstances, and right now we are not in the best of circumstances. Position sizing will be crucial in this market going forward, as the contract size is large, and the volatility has a history of spiking quite wildly.

It is worth noting that the 50 day EMA sits right around the crucial $31 level, so I think it could very well act as a floor and the price action on Tuesday certainly gives you that impression as well. So, all things being equal, I suspect this is a buy on the dip scenario, but I’m not overly impressed by the price action right now. I think we’re just kind of meandering around looking for a longer term signal that has not appeared quite yet. The PPI number on Thursday could be important here.

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