Silver Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Technical Analysis

The silver market rallied significantly during the early hours on Monday, as it looks like we are ready to take off a bit. It’s probably worth noting that the $30 level came in as pretty significant support based not only on previous action, but psychology, I would imagine, and of course, the possibility that there were quite a few options trades placed there, and that always tends to have an effect on markets as well.

When you look at this chart, you can see the 50-day EMA sits just above and is causing a little bit of potential resistance near the $31.50 level, but really at this point, I think that’s a minor point. The market had been in an uptrend for quite some time before this significant fall, so the question now is, will the momentum pick up to the upside? It’s very possible, but I also recognize that if we were to break down below the lows of Thursday of last week, then we almost certainly will test the 200-day EMA at the $29 level.

Keep in mind that silver is extraordinarily volatile, so you always have to be cautious with your position sizing. And you should also keep in mind that, although it does tend to move along with gold over the longer term, the reality is silver has industrial uses as well, so there is a little excess of noise at times in this market. Furthermore, the volatility is almost always higher than gold, so make sure you keep that in mind when you’re trading.

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