Silver opened this morning with a large gap higher as rumors swirl regarding potential speculative positions increasing.
Traders taking a look at silver for the first time today may have been surprised to see a sudden spike higher in the commodity on their charts. Rumors are beginning to trickle into the business media regarding a possible wave of retail clients who may have decided to target silver as a worthwhile trading opportunity. Experienced speculators may welcome the new players if the rumors are confirmed near term, but they should also be ready for potentially volatile effects.
The jump in the price of silver this morning briefly challenged the 30.000 resistance level, but then caused a reversal lower. Fast trading conditions persist and this may remain the case; traders need to be using risk management astutely. Speculators need to pay attention to the possibility that their brokers may change margin requirements for silver in order to place a trade too, and to protect their clients against perceived volatility.
Silver has enjoyed a rather good bullish climb since March of 2020, but it has also exhibited plenty of drama. Volatility caused by quick reversals is a staple of silver, and even with today’s developing news regarding the potential of new speculators targeting the commodity, the gyrations in the market early this morning are not extraordinary.
In late July and early August of 2020, silver tested highs near 30.000, so today’s price is not without precedent. Although silver has not touched these price altitudes and punctured them higher recently, the commodity is no stranger to speculative conditions. From October 2010 until January 2013, silver frequently traded above the 30.000 USD per ounce level. In May of 2011, the commodity briefly tested the 50.000 juncture, which was the apex of its bullish move and then a steep and long-term bearish trend followed, which saw silver touch 13.000 USD in November 2015.
Silver has the capability of moving higher. Speculators need to monitor the commodity carefully in the next few days technically and keep their ears attuned to developing news which could spark additional volatility. Looking for additional upside near support ratios of 29.150 to 28.750 may be attractive to speculators with the desire to pursue upward movement. However, traders also need to be cautious and understand that spikes may prove dangerous in the short term as news swirls and brokerage houses consider changes to their trading rules.
Silver Short-Term Outlook:
- Current Resistance: 30.000
- Current Support: 28.750
- High Target: 31.000
- Low Target: 27.950
Go to the news source: Spotlight Growing as Speculative Rumors Flourishing