Silver Price Forecast – Silver Continues to Look Dangerous

Silver Markets Technical Analysis

Silver rallied a little bit during the early hours on Monday as we continue to see a lot of volatility in what I suspect will continue to be an extraordinarily volatile market. Keep in mind that silver is extraordinarily followed under the best of terms. And at this point in time, we are not in the best of terms when it comes to clarity. The $30 level above should continue to be a little bit of a barrier. So, if we could break above $30, I think that means that the market could really start to take off to the upside.

And with that being the case, breaking above the $30 level allows the market to go looking to the $31.50 level. If we break down from here, then we could have a look at the 50 day EMA, which is just above the $28.50 level, which of course is an area that previously had been significant resistance. So, a bit of market memory should come into play there.

Keep in mind that silver is extraordinarily sensitive to interest rates, and a lot of the selling that we had seen on Friday was due to the jobs number being hotter than anticipated in the United States as people are concerned about whether or not the Federal Reserve will continue to stay tighter for longer, something that’s probably very possible.

That being said, Wednesday has an FOMC meeting, so keep that in mind because it could have a major influence on what happens with silver next. After the beating on Friday, we are still technically bullish. And at this point in time, I think it’s probably a market that you’re looking for buying opportunities but expect a lot of noise for the next couple of days.

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