Silver Weekly Price Forecast – Silver Continues to See Back and Forth Behavior

Silver Markets Weekly Technical Analysis

Silver initially tried to rally during the trading week, but then turned around at the $30 level to fall rather significantly, all things being equal. This is a market that I think continues to see a lot of choppy and volatile trading, which is typical for silver anyway. Underneath we have the $28.50 level, an area that of course is previous resistance going back several times throughout history.

And therefore, I think you’ve got a situation where you have to be paying close attention to how this plays out. Short-term pullbacks I do think will end up being buying opportunities, but keep in mind that Monday is Labor Day in the United States and therefore volume will be a little bit low.

On the other hand, if we can turn around and break above the $30 level, then we could go looking towards the $31 50 cents level in general. This is a market that I think continues to see a shot higher more likely than not, if for no other reason than a little bit of protection for your portfolio. It is an industrial metal though.

So, you have to pay close attention to the industrial outlook for the rest of the world because quite frankly that’s where most of the silver demand comes from over the longer term. If central banks are going to cut rates that should help silver but at this point in time, I think we’re just chopping along with a little bit of a buy on the dip attitude, but it might be worth noting that each success of high has gotten lower.

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