Silver Forecast Today 06/05: Sideways Action (Video)

(MENAFN- Daily Forex)

• Silver has rallied a bit during the session here on Monday, but it looks like the $33 level continues to cause a little bit of a headache as we have pulled back from that level.
• That being said, I think this is a situation where traders will continue to look at this area between the $32 level on the bottom and the $34 level on the top as its overall range.
• Ultimately, I do think we have a situation where traders are just trying to kill time here, determining where we go for a longer term move.

All things being equal, this is a market that has been very noisy as of late. It's been very negative and then was very bullish. So, it does make sense that we might need to take a little bit of our profits here in order to kind of wait for another catalyst. And I think that's part of what's going on.

Silver is Volatile Most of the Time

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Silver is extraordinarily volatile under the best of circumstances anyways. And therefore, you do need to be cautious about your position sizing but recognize that the market is very volatile. It's a very big contract. So, the tick value can come into play, make sure you are paying attention to your size. If we break down below $32, then we would have to watch the 200 day EMA.

The 200 day EMA is a technical indicator that a lot of people watch. If we can break higher and above the $34 level, then I think you've got a situation where silver could go racing towards 35 dollars, and $35 is an area that's been important multiple times. I do think it is a bit of a magnet, but in the short term, I would expect more sideways noise, especially as the tariff war continues. And of course, we have to watch out for the FOMC meeting and statement on Wednesday.

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