Silver Prices Plunge More Than 5%, Closes Dec 27 Bull Gap Window, Set to Close at 21 Day Average

Six times since Aug 24, the 21 day moving average has supported silver prices. However, using a 21 day period moving average on the Bollinger band volatility study, we find that volatility has begun to contract since the Nov 9 volatility expansion. Now that the volatility band is contracting, the upper band indicates where silver prices are relatively high and potentially unstable. A test of the lower band around 28.06 can't be ruled out near term. Moreover, silver prices are apt to become less stable on return moves to the upper volatility band in the coming weeks.