Silver Price Outlook – Silver Continues to See Volatile Moves

Silver Markets Technical Analysis

Silver has been all over the place in early trading on Monday as we tested the crucial $28.75 level, only to turn around and bounce quite massively. That being said, I think you’ve got a situation where traders will have to pay close attention to what they are doing. And with that being the case, I do believe that we may be getting close to a potential bottom in what’s going on at least with precious metals. After all, precious metal selling off in a time of fear is generally thought of as a way to raise cash for margin calls, it may not be really anything more than that. And given enough time, I think we’ve got a situation where it’s interesting that we did rally all the way to the 200 day EMA, only to pull back.

Ultimately, I think you’ve got a situation where traders will continue to look at this through the prism of a market that is still somewhat volatile. But I think it’s also a market that has fallen so quickly, and in such short order, that sooner or later, it has to bounce, as markets don’t go in one direction forever. And I think that might be part of what you are starting to see on Monday.

If we were to break down below the $28.50 level, then it’s possible that we could drop to $27, maybe even $26. But keep in mind that silver is an extraordinarily volatile contract under the best of circumstances, and right now, things are an absolute mess. So be very cautious with this market. Make sure that you don’t overleverage yourself and, of course, be quick to play stops and take profit.

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