Silver Price Forecast – Silver Continues to Look Lively

Silver Markets Technical Analysis

The silver market has rallied rather significantly during the early hours on Monday as we have broken above the 50 day EMA. It’s worth noting that we ended up forming a nice hammer on Friday, right at the $31 level. The $31 level is an area that a lot of people would be paying attention to as it has been both support and resistance. And at this juncture, I think by bouncing, we could open up the possibility of a move to the $32.35 level.

If we can break above that level, then it’s obvious that the market would go looking to the $33.33 level, which was the recent swing high. This is a market that has been bullish overall, but it is also a market that has been very noisy. And I think that will continue to be the case in this market going forward.

The silver market of course is getting lifted by a shrinking US dollar. That should continue to drive the silver market higher, at least in the short term. Keep in mind that silver is extraordinarily volatile, and it is a big contract. So, make sure you keep your position size reasonable when trading it. I have no interest whatsoever in shorting the silver market, and will keep it very much a long only market, but I would do so with small bits and pieces. Silver is not a market that you want to get aggressive about trading in, and caution is crucial.

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