Forex Trading

Silver Forecast Today 29/3: Respecting Same Area (Video)


The silver market is always a noisy and dangerous place to be, and therefore you have to be cautious about the position sizing, and when you jump in.

  • Silver markets continue to find support right around the $24.50 level.
  • It is worth noting that on Friday we’ll have a shortened trading session, but there will still be business conducted.
  • The $24.50 level is an area that previously had been major resistance, so it does make a certain amount of support since.

After all, market memory comes into play and therefore a bounce isn’t necessarily that surprising. The question now is whether or not this is a bounce that we can build off of or if we’re just simply going to consolidate.

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The main reason I say that is that the $26 level above is a massive resistance barrier that traders have been very well accustomed to over the last couple of years and therefore whether or not we can break above there is a completely different question. Unlike gold, silver isn’t necessarily always used for a precious metal. It’s also an industrial one and therefore it does have a little bit different behavior. Beyond that there have been multiple fines against JP Morgan for manipulating the market. This is a known known and the paper market in silver offers more ounces than there actually are in the world. So therefore, you have to understand the game you’re playing.

Silver Forecast Today 29/3: Respecting Same Area (graph)

I think in the short term we could very well get a bit of a pop, but I also recognize that it would be very difficult to break above that $26 level. If we did, then there would be a massive, short covering rally. In the meantime, I also pay close attention to $24.25 because if we break down below there, the $23.50 level would be the next target as that was a previous resistance level and has shown supportive action in the past. Anything below there would be a bit of a death knell for the silver markets. The silver market is always a noisy and dangerous place to be, and therefore you have to be cautious about the position sizing, and when you jump in. A lower leveraged position makes sense at this point in time, and that’s how I will be playing it.

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