Silver Price Forecast – Silver Continues to Look for a Bounce

Silver Markets Technical Analysis

The silver market initially pulled back a bit during the trading session on Thursday but has seen buyers jump into the market as the 50-day EMA has offered technical support for the third day in a row. Ultimately, this is a market that is bullish, but you also have to keep in mind that silver is a very noisy market to say the least, and therefore you have to be very cautious with your position size. During the day, the Tuesday trading session, we saw a significant sell off, but now it looks like we are trying to reverse that fear and push the market towards the $32.35 level, which is the top of that candlestick.

If we can, then the market will challenge a significant previous resistance barrier that it did overcome about a week and a half ago. So, we’ll see whether or not there are still selling contracts sitting at that level. If we do break above there, then the $33.50 area is a region that I would watch which breaking that opens up the possibility of a move to the $35 level.

On a pullback from here, if we break down below the 50 day EMA, then the $31 level is an area that I would be paying close attention to. As it had previously offered resistance, it should offer support now. Either way, this is a market that I think you need to keep your position size reasonable because there are a lot of concerns out there about the global growth scenario, and of course, whether or not tariffs will in fact be enacted.

That being said, Donald Trump did push back tariffs to Mexico and Canada by a month yesterday, flinching essentially. So, the question now is, will the market even take that seriously? With this being the case, I think silver remains bullish. But again, it is going to be very volatile as it’s not just a precious metal, it’s also an industrial one.

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