By Doug Busch
Silver has always been a volatile trade, and that volatility can test even the most confident investors. Sharp price swings often create moments of hesitation, where fear can outweigh conviction.
But the best opportunities often emerge in these fast-moving, uncomfortable environments, requiring investors to act decisively, even when the setup feels anything but certain. As Stanley Druckenmiller recently said, "Volatility is not the enemy, it's your entry point if you have conviction." To be clear this was not about silver, but overall market psychology.
On March 9 I wrote an article calling for incoming weakness when silver was trading in the mid $80s. On Thursday morning the precious metal touched the mid $60s and is fast approaching my target near the upper $50s and low $60s. The daily chart shows the possible double bottom I was referring to. This pattern suggests silver could bottom near $60, where the 200 day simple moving average would catch up in price. A good indication the price was about to soften was the bearish RSI divergence, where the price made a higher high and RSI made a lower high last December and January. Look for a move toward $61 for an entry point. Then look for the rally to resume and head toward a double bottom pivot of $97.40 in the second half, which formed after the bearish engulfing candle from March 2.
Silver was trading around $70 Thursday.
Its monthly chart shows the historic move with a 10-month winning streak between last May and this February. Give April credit for recording a bullish hammer candle, which set off the robust run. But notice there were canary in the coal mine signals, starting with a huge bearish shooting star in January that incredibly closed 35% off its intramonth high. Then February registered a bearish hanging man, and March nearly two-thirds through looks like an ugly bearish engulfing candle that was rejected at its highs near the very round $100 number. Notice too how monthly RSI hit a white hot 93.
Silver may offer another chance, but in a market this volatile, hesitation could mean missing it.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 19, 2026 14:46 ET (18:46 GMT)
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