Silver Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Technical Analysis

Silver initially fell during the trading session on Thursday but has since bounced from the 50-day EMA in a technically driven move, but also driven by the PPI numbers in the United States missing the expected results. So, with that being the case, I think we do eventually see this market turn around and rally towards the $30 level. The $30 level is a situation that if we can get above that $30 level, then I believe that silver really starts to take off to the upside, perhaps reaching towards the $32 level. Underneath, of course, we have the 50-day EMA, but we also have the $28.50 level, both of which could offer significant support.

I do like the idea of buying cheap silver, but I also recognize that silver is an extraordinarily volatile market, and it can get you into serious trouble if you are not cautious with your position size. Don’t get enamored by the idea that silver can really rip to the upside because it can also fall apart rather quickly as well. All things being equal, this is a market that I think continues to be noise driven but also driven by perhaps a shrinking US dollar or perhaps even the idea of green technology and the demand for silver out there on the industrial base. Because of this, I think that silver will continue to be a market that attracts a certain amount of money, but it is volatile, and therefore you need to approach with caution.

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