Silver Price Forecast – Silver Continues to Reach Even Higher

Silver Markets Technical Analysis

The silver market has rallied rather stringently over the last several days and Tuesday was no exception as we are now threatening the $30 level. Quite frankly, a lot of this is overdone and I think you cannot chase silver at these high levels. You are looking for short-term pull banks in order to take advantage of what’s obviously a very bullish market and a couple of areas underneath could serve as that support. The 50-day EMA sits right around the $28.75 level and offers a certain amount of support.

If we were to pull back to that area, I think a lot of people would be interested in trying to pick up cheap silver. If we do break above the $30 level, then it’s possible that we could go looking to the $31 level given enough time as it is an area we had seen a lot of action at previously. And then after that could go looking to the $31.50 region.

That being said though, we’ve had several strong days in a row, so while we do have a lot of impulsivity in favor of silver, the reality is momentum only lasts so long. A little bit of a pullback probably goes a long way into the psyche of buying on the dip and continuing the longer term trend to the upside. This is a market that I will not short sell anytime soon, as it is far too strong. Quite frankly, I think silver will continue to be very noisy, but it looks like the buyers are very much in control at the moment.

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