Silver Price Forecast – Silver Continues to Look Sideways

Silver Markets Technical Analysis

The silver market is fairly quiet during the early hours on Tuesday as traders are continuing to look at the higher yields in America and flinch. At this point, silver is on the precipice of a breakdown, but we’re not there yet. We are this close to having a market where you sell short. We have recently broken below the neckline of a head and shoulders pattern, the $30 level, an uptrend line and the 200 day EMA. We haven’t really reached escape velocity from the 200 day EMA yet, but the longer this goes on, the more likely it is that we will.

The question is, will it be to the downside or the upside? As things look in the early hours of Tuesday, I think we will get a little bit more consolidation in this area as we try to sort out what to do next. The 50 day EMA is driving lower and that does suggest that momentum is dropping, but really all you have to do is look at the chart to see that. So, if we make a fresh new low on a daily close, I think at that point, you could look at this through the prism of the head and shoulders breaking lower, and you could try to measure that move. And that would actually have this market dropping down to about $24.50.

I think a more conservative estimate for a target would probably be somewhere around $26.50. Now, that of course, is all predicated on actual continuation. If we were to turn around and break above the $30 on a daily close, that would be a very strong sign. It would show a nice recovery. So, I think we’re kind of in a wait and see pattern here in silver, which makes a certain amount of sense considering that silver is highly volatile. It’s the end of the year anyway. So, volume of course is all over the place. And of course, interest rates continue to be stubbornly high in the United States.

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