Silver Price Forecast – Silver Continues to Look Weak

Silver Markets Technical Analysis

The silver market fell a bit during the trading session on Tuesday, testing the 200 day EMA as we continue to see a lot of concerns when it comes to the idea of economic growth. Silver of course is an industrial metal so it’s particularly sensitive to this environment. Unlike gold, it’s not just a precious metal. We are hanging around the crucial 200 day EMA which of course is something worth paying attention to, and the $26.50 level is also an area that a lot of people will be paying attention to as it has a lot of market memory built into it.

With that being the case, I think you have to look at this through the prism of whether or not we can break through all of that and then drop below the 61.8% Fibonacci retracement level. If we do, then we could see this market drop quite drastically.

Remember, silver is extraordinarily volatile, so you have to be very cautious with the volatility and recognize that position sizing will be crucial. I think we are probably going to be better off in the gold market than the silver market, but ultimately this is a scenario where it looks like the sellers are really starting to push the issue. Because of this, a breakdown would not be a massive surprise at this point, and I think that silver could give us a heads up on what risk appetite is doing globally.

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