Silver Forecast Today 30/01: Massive Volatility (Chart)

(MENAFN- Daily Forex)

• Silver markets continue to see a lot of volatility on Thursday as we have seen a new high, only to turn around rapidly.

Silver markets continue to see a lot of volatility as we broke above the $120 level, only to turn around and show signs of weakness. All things being equal, this is a market that I think continues to see a lot of questions asked about whether or not it can continue to go higher.

But with all that being said, I also recognize that we continue to see a lot of questions about whether or not the silver market can sustain this type of pressure and quite frankly, I don't think it can. So, with that being the case, I also recognize that the market is going to remain very dangerous and doing anything with huge position size is probably going to be a major problem.

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We have seen the market break all the way towards the $122 level and then turn around to drop to the $111 level in a very short amount of time during the day. In fact, it's probably worth noting that volume spiked quite wildly at about 10:00 New York time and with this being the case, it looks like we have seen a retest of the $110 level as we are starting to see the narrative play out that perhaps there's all sellers and no buyers at some of these higher levels.

If that's going to be the case, I fully anticipate that this market will probably drop. I do think the $100 level will be a bit of support, but I also recognize that the volatility will continue to be a situation where traders are looking at this through the possibility of a deep correction that they can take advantage of value.

The silver market will eventually go looking to its floor and find out where that is, but this time it's obviously going to be higher than the last major melts up. All things being equal, I think buying dips continues to work, but as we saw on Thursday, you have to be very careful about position sizing as a lot of long positions just got wiped out.

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