SLV

Silver Price Forecast – Silver Continues to Show Volatility

FXEmpire.com -

Silver Markets Technical Analysis

Silver seems to be discovering gravity, and with the short squeeze, it’s hard to tell whether or not it’s over, but clearly, this is a shot across the bow. It’s probably only a matter of time before we see a significant pullback, and it is worth noting that by the time the futures markets opened up, we had dropped $1.50 from the highs in premarket electronic trading. So, what does this mean? Well, it means that silver is overbought, and people are starting to recognize that. I mean, imagine getting silver at $26, which would have been the perfect entry. And then suddenly find yourself up six and a half dollars on a silver contract, which of course is an extraordinarily huge profit.

With that, it looks like there’s been some major profit taking and it’s worth noting that we were well above the overbought condition in the relative strength index. So, with all that being said, it’s not a huge surprise that this parabolic move is starting to pull back. Whether or not it’s the end of the trend, we will have to wait and see because these are always difficult to deal with. But I do think that there is a significant amount of support underneath near the $30 level. So, I would be particularly interested in a pullback to that area and perhaps signs of support. Furthermore, you have to pay attention to the US dollar and what it’s doing, because it will obviously have a major influence on what happens with thesilver marketas well.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.