Silver Price Forecast – Silver Continues to Look For The Bottom

Silver Markets Technical Analysis

The silver market has rallied slightly during the early hours on Wednesday as we wait for the CPI numbers in the United States and of course the FOMC meeting later in the day. Perhaps the most important thing will be the press conference, but don’t be overly surprised to see a lot of choppy action during the session heading into Thursday as well.

At this point, I do believe that the $30 level above is a psychological barrier and if we can overcome that level, it’s likely that silver will continue the uptrend. On the other hand, if we fall from here, we have the 50-day EMA that could offer support and then the crucial $28.50 level. $28.50 is an area that previously had been resistant. So, I think a lot of market memory comes into the picture there.

Keep in mind, silver is not gold. So therefore, it doesn’t get as much geopolitical risk factored into it. But what it does get is industrial demand. And the question now is whether or not the industrial demand for silver will continue to crawl at a strong pace or if it will continue to be something that’s a little bit indecisive. After all, we’ve seen the argument for not enough silver for years and yet silver generally is a miserable place to put your money, at least from a longer term standpoint.

Nonetheless, there has been a major short covering rally. So, I do think that eventually the buyers will come back. It’s just a question of whether or not we take the position that will come first in this region, or if we have to find support at a lower level.

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