Silver Price Forecast – Silver Continues to Find Buyers on Dips

Silver Markets Technical Analysis

The silver market initially pulled back just a bit to show signs of negativity, and then we turned around to show signs of life again. All things being equal, this is a market that I think goes looking to the $30 level above. The $30 level of course is an area that is a large round psychologically significant figure and of course an area that a lot of people will pay close attention to. Short-term pull banks will continue to see a lot of support as there are value hunters underneath, especially near the 50-day EMA and the $28.50 level as it has a lot of market memory there.

Keep in mind that silver will react to the US dollar and interest rate situations in various markets. If we do get above the $30 level, then I think that opens up the possibility of moving to the $32 level for a continuation of buying pressure. In general, I think this is a market that you simply cannot short and at this point if we did break down below the $28.50 level then that might lead to a much uglier correction but right now it looks like everybody is doing everything they can to jump in and push silver higher continuing the overall bullish momentum that we had seen for some time.

I believe that silver will remain positive overall, but you always need to be careful with the position size and the leverage that you employ. After all, this is a market the is volatile under the best of situations. This market will continue to look bullish but will have the occasional sharp pullback.

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