Silver Price Forecast – Silver Continues to Look Threatened

Silver Markets Technical Analysis

The silver market rallied just a bit during the trading session on Tuesday in the early hours, but really at this point in time, you’ve got a scenario where traders are looking at this through the prism of whether or not the 200 day EMA holds up. So, with that being said, I think you have to look at this through questions of, are we going sideways or are we going to break down?

Because quite frankly, the candlestick on Monday was horrible and in that being the case, I think you have to really look at this with suspicion. I don’t like the idea of buying silver over gold, at least, because although both are considered to be precious metals, silver seems to be particularly sensitive to interest rates, and interest rates in America are extraordinarily high.

I would be watching this area down here right around $28.75 because if we break down below there, it means that we have sliced through a double bottom. And in that scenario, then you probably have this market looking for $27.75 and then possibly $26.50. As far as buying silver is concerned, it’s not really a thought right now, but if we could get back to the $31 level, I would consider it. Anything above there would be something to watch out for, but it doesn’t seem likely at the moment. I remain very cautious about getting long of silver and prefer gold if I had to buy metals at the moment.

For a look at all of today’s economic events, check out our economic calendar.