Silver Today 24/6: Massive And Volatile Swings (Video)

(MENAFN- Daily Forex)

  • The silver market plunged during the trading session on Friday as PMI numbers in both the manufacturing and services sector have come out hotter than anticipated.
  • Wall Street had to grasp the idea that inflation is still here.
  • I don't see why that was a surprise, but at this point in time, the market seemed to be surprised by it.

Stabilization is Worth Paying Attention to

Since then, we have seen the market kind of stabilize, but all things being equal, the real question is going to be whether or not we can retake the $30 level. The $30 level, of course, is a large round psychologically significant figure, and if we can break above there, meaning to close above there on a daily chart, that would be a major victory and a sign that there is still plenty of buying pressure underneath. If not, then we have to look at the 50 day EMA underneath as a potential support level and then eventually the $28.50 level underneath.

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The $28.50 level for me is the short term floor and therefore I think you have to look at this through the prism of a market that continues to see a lot of noisy behavior, but we do continue to see plenty of people willing to step in and pick up silver. Yes, it's volatile, but really at the end of the day, it's in an uptrend and we have to keep that in the back of our mind.

If we can recapture the $30 level, it's possible that we could go looking to the $32 level, but at this point in time, you need to see a little bit of momentum to start jumping in. I don't necessarily want to short this market, but I'm not quite ready to buy it. I want to see some type of bounce and momentum to the upside to really kind of get things going. At that point in time, I think we could see a lot of“FOMO trading”, which we see in silver quite often.

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