Silver Price Forecast – Silver Continues to Look For Momentum

Silver Markets Technical Analysis

The silver market has rallied a bit during the early hours on Thursday, but quite frankly, we’ve got a situation where we had sold off so viciously on Wednesday that I think you’re probably better off waiting to see whether or not we can turn things around. After all, as we head into the New York session, we have given up half the gains.

That doesn’t mean that the Americans won’t pick this market up and continue to drive it higher. It just means that the market is more likely than not going to continue to be a little on edge, I do believe that the $30 level is crucial, and it certainly has shown itself to be so during the day on Wednesday, but even if we broke down below there, it doesn’t necessarily change the trend. It just shows that we are going to remain very choppy and volatile.

The 50-day EMA sits just below there, and I think that is also something worth paying attention to as well. With all of that being said, silver is most certainly a market that you’re going to have to be cautious with because it’s volatile under the best of circumstances, but it’s also driven mainly most of the time by interest rates, but it can also be driven by risk appetite, geopolitics, those types of things.

So, you also have to be aware of that. Ultimately, I think you continue to see a lot of noise, and I think silver continues to be a bit of a wild animal that you have to be very cautious with your position sizing more than anything else. It does favor the upside, so that is, I think, the most important thing to pay attention to.

For a look at all of today’s economic events, check out our economic calendar.