Silver Price Forecast – Silver Continues to Build a Basing Pattern

Silver Markets Technical Analysis

Silver rallied slightly during the early hours on Wednesday as it looks like the couple of hammers that we have formed over the previous couple of days suggest that we have in fact found the $28.50 level to be extraordinarily supportive. This shouldn’t be news, it’s an area that has been important more than once. With this being the case, I like the idea of buying silver, but I do recognize that if we were to break down below the $28.50 level, that could be a very bad turn of events to say the least.

Ultimately, this is a market that given enough time, I do think tries to reach the $30 level, although the 50 day EMA is between here and there. This is one of my favorite setups at the moment, but we’ll have to see how it plays out. Nothing is 100%, obviously. With all of that being said, I am bullish, but I also recognize that this is a market that is ordinarily volatile under the best of circumstances, so you do have to remember that.

The silver market breaking above the $30 level opens up the possibility of a move to the $32 level and I think that obviously would attract a lot of attention as well. So, with everything that I see in the chart, it certainly looks as if we are eventually going to try to break to the upside. If we were to break down below the $28.50 level, then I think we would go looking to the 200 day EMA underneath.

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