Silver Price Forecast – Silver Continues to Look Sideways Overall

Silver Markets Technical Analysis

The silver market was rather quiet during the early hours on Wednesday as we continue to see a lot of choppiness. That being said, I think this is a scenario where you have to be somewhat hesitant to buy silver, and I think really what we are looking at is a situation where we are just simply consolidating overall. I believe that the $28.75 level is significant support, just as the $31 level is significant resistance.

We are hanging around the 50 day EMA, and of course there are concerns about a strong US dollar that typically works against the value of silver. So that of course is worth paying attention to, and ultimately, I think you’ve got a scenario where we may grind sideways, perhaps with a slightly upward bias, but really nothing major. If we were to break down below the $28.75 level, then I think the bottom falls out. Then we will go looking for $26.50.

On a breakout above $31, then the $32.35 level comes into play, which is an area where we’ve seen resistance recently. All things being equal, I think silver is very volatile and I’m not really overly impressed one way or the other with this. I’m pretty neutral on the silver market at the moment and therefore have no real interest in trying to get too cute or big with my positions. Remember, silver is very volatile, and you need to be very cautious with the position size, and of course leverage.

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