Silver Price Forecast – Silver Continues to See Downward Pressure

Silver Markets Technical Analysis

Silver fell a bit during the course of the trading session on Friday and as you can see it looks like we are trying to get to a support level. The support level is near the $30 level and of course the uptrend line, but really at this point in time, I think you have to assume that the market needs to move before you put money at risk. After all, silver is an extraordinarily dangerous market to be involved in at times and of course the position sizing is crucial. So, we are getting close to a point of inflection, but really at this point, I don’t see any reason to be a buyer.

I certainly wouldn’t be a seller of this market, at least not until we break down below the 200 day EMA, which is below there. If we can fall and then bounce, at least then you have a place where you can say it’s time to get out if the market turns around and falls. In that environment, we could go back to the $32.35 level, but with the US dollar acting the way it is, silver is going to struggle, at least in this environment. Industrial demand could be waning and if that is the case, that’s the one to punch that really works against silver, but I do see a lot of support just below. So, I’m not willing to short it here. We have to wait and see what the market actually does with this region.

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