Silver Price Forecast – Silver Continues to Look Strong

Silver Markets Technical Analysis

The silver market rallied a bit during the early hours on Tuesday, but then gave back the gains to show signs of exhaustion. All things being equal, there is plenty of support underneath near the $30 level, perhaps down to the $28.50 level. Between those two levels, we also have the 50-day EMA, which of course offers support.

To the upside, the $31.50 level is an area that if we can break above that level, then it opens up the possibility of a move towards the highs again. All things being equal, I believe this is a market that probably continues to be more or less a buy on the dip situation due to the fact that interest rates around the world are falling.

Central banks, of course, cutting rates will continue to put downward pressure on them and silver of course is a precious metal, but it is also an industrial metal and therefore you need to pay close attention to whether or not industrial demand is going to pick up or whether or not just the overall economy gets a boost due to all of the added liquidity.

Only time will tell, of course, but do recognize that silver is an extraordinarily volatile market, and therefore you need to be cautious with your position sizing, recognizing that silver is a wild, volatile creature to trade at times. The silver market continues to see a lot of noise, and I think that continues to be the biggest issue that you will face in trading it.

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