Silver Price Forecast – Silver Continues to Pressure a Major Resistance Barrier

Silver Markets Technical Analysis

The silver market rallied a bit during the early hours on Friday as we continue to see the market test the idea of the $32.50 level being broken. If we can break above there, and more importantly close above there on the daily charts, then I think the market will be ready to go higher. Short-term pullbacks should end up being buying opportunities and as a result, I think you need to look at this through the prism of trying to find value.

Silver of course is a very volatile contract to say the least, so therefore you have to be very cautious about putting a lot of money into this contract in one shot. After all, it can cause quite a bit of damage to your account if you are on the wrong side of it. The 50 day EMA at the $30.30 level is what I see as the floor. Furthermore, we also have the $30 level as well, offering support.

In general, I think we’ve got a situation where traders continue to look at this through the prism of a market that is reacting to interest rates, reacting to on Friday, at least the US dollar giving back some of its strength. And then of course, the idea that if the Federal Reserve is going to loosen monetary policy, it could very well throw more money into the idea of expanse in industry as it is highly sensitive to industrial demand. So therefore, I think you’ve got a scenario where we are going to try to break out rather quickly. And when we do, we may have quite a bit of follow through, perhaps trying to get to the $35 level in the intermediate term. I have no interest in trying to short this market.

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