Silver Price Forecast – Silver Continues to See Buyers

Silver Markets Technical Analysis

The silver market rallied a bit during the trading session on Friday, as we continue to see a lot of momentum to the upside near the $31.50 level. But if we can break above that level, then the market could go to the $32.50 level. Short term pullbacks at this point in time could be a nice buying opportunity, especially near the $30 level as it is a large round cycle. Logically significant figure. If we were to break down below the $30 level, then we could very well see this market really drop, perhaps down to the 50 day EMA, maybe even the $28.50 level.

Keep in mind that silver is highly volatile, so you need to be very cautious with the position sizing and of course, you have to be very cautious when you jump into the market, because the last thing you want to do is jump in and chase a market that is extraordinarily volatile. Pay attention to the US dollar. It has a negative correlation to silver, and then, of course, it also is a market that is very sensitive to the interest rate situation coming out of the Federal Reserve, which looks like it is going to fall.

All things being equal, this is a market that remains very noisy. But I do think that ultimately the buyers are in control. And I think that will be the story going forward. If we get a major risk off scenario, then we could see silver really get hammered. But right now, I think most pullbacks are going to end up being buying opportunities.

For a look at all of today’s economic events, check out our economic calendar.