Silver Weekly Price Forecast – Silver Continues to See Momentum on Recovery Week

Silver Markets Weekly Technical Analysis

The silver market did fall pretty significantly during the week to reach down to the crucial $28.50 level. This is an area that previously has been support and resistance in the past. So, we have turned around to show signs of life. The $28.50 level of course offers a lot of market memory and therefore I think it makes a certain amount of sense that we would see this market pay close attention to this area. And at this point we have ended up forming a bit of a hammer. We did form a little bit of an inverted hammer during the previous week.

So, I do think there’s a lot of noise between here and the $31 level, most specifically at the $30 level. I think short-term traders will continue to buy dips and you will have to pay attention to the US dollar and interest rates in general. Keep in mind that silver is also an industrial metal as well, so that’s also worth paying close attention to. At this point, I think the market is going to try to get to the highs again, but we are probably looking at more or less a noisy market on the way up.

Now, if we were to reach below the $28 level, that would blow through the market memory support and could open up a move down to the $26 level. However, at this point in time, it doesn’t very likely look like a market that’s going to break down anytime soon.

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