Silver Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Technical Analysis

The silver market initially pulled back towards the $27.70 level, only to turn around and show signs of life again. During the early hours on Monday, the $28.50 level above is important, and if we can get above there, it would be a victory for the buyers. Anything above there then starts to ask questions of the $30 level, which is where we had pulled back from previously. In general, this is a market that I think remains very choppy and noisy, and it is probably only a matter of time before we have to make a bigger decision. When that comes, we will see a lot of massive inflows into the market in whichever direction we choose.

It is worth noting that the 50% Fibonacci retracement level, which sits on the $27.30 level, also features the 200-day EMA. So, I do think that there is a significant amount of support underneath. Whether or not we can go higher, we’ll have a lot to do with industrial demand and what people do with the US dollar, but with a serious lack of economic news during the day on Monday, we probably have a proclivity to perhaps drift a little higher as traders don’t have anything to freak out about for the next five minutes. Silver of course is very volatile and as the stock markets are volatile, I think silver will probably just increase that volatility. So, by all means, make sure that your trading position is relatively small.

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