Silver Price Forecast – Silver Bounces on Monday to Show Signs of Life

Silver Markets Technical Analysis

The silver market was a bit positive during the early hours on Monday to show signs of life. All things being equal, this is a market that I think goes looking to the $28.50 level, which has been both support and resistance multiple times in the past. If we can break above that level, then it’s likely that we could go looking to the $30 level after that.

Short-term pullbacks at this point in time could be a buying opportunity, especially near the $26.50 level where we also have the 50 day EMA. And therefore, I think you need to look at that area as a bit of a short-term floor in the market. I do think at this point in time, the market is likely to continue seeing a lot of volatility, but that’s nothing new for silver. Keep in mind that the market has a lot of external pressures.

We have the industrial concerns because quite frankly, silver is an industrial metal. But sometimes geopolitics will come into the picture as well as people try to save their portfolios with hard assets. Right now, it looks like the $26.50 level is in fact a very hard floor in this market. So as long as we can stay above that and perhaps the 61.8% Fibonacci retracement level, which is just below there, I think the market is still a buy on the dip scenario, but a noisy one to say the least. Position sizing is crucial, and if you are not careful, you could find yourself in trouble. Trade accordingly.

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