Silver Price Forecast – Silver Continues to Reach Toward Resistance

Silver Markets Technical Analysis

The silver market rallied a bit during the early hours on Tuesday as it looks like we are threatening the 50-day EMA, and also, I think you’ve got a situation where the previous uptrend line comes into the picture as well. So, while silver has had a couple of really strong days, the reality is that it really hasn’t broken through major resistance yet. So, I’m a little hesitant to get overly excited. This is a technical bounce due to the 200 day EMA and perhaps even more importantly, the fact that 10 year yields did pull back a bit over the last couple of sessions in America and that of course makes a huge difference.

So, with that being said, I believe we have a situation where we’ll have to wait and see whether we can get above the $31 level. If we do, then I think it opens up the possibility of a move to the $32.35 level. Short-term pullbacks at this point in time are probably more likely than not and it’s also worth noting that the market is kind of hanging around this $30 level, with the 200 day EMA just below it.

I think with the jobs number on Friday, we could see a lot of volatility late this week. Right now it just simply looks like we are trying to recover a bit. It really wouldn’t take much Imagination at this point to say that we’re basically threatening the neckline of the previous head and shoulders. So again, as a general rule as an analyst if you don’t really trust a move, you’re better off just to let it go. Now there is a point at $31 where I do, but right now I think this is what is known as a medicine ball. That’s when they throw a ball between two players that are both going to go for it. Somebody’s going to get hurt. That’s kind of how I feel about silver right now.

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