Silver Price Forecast – Silver Continues to See Noise

Silver Markets Technical Analysis

The silver market initially tried to rally during the session on Friday but gave back gains rather quickly as it looks like we continue to see a lot of overhead pressure. Quite frankly, this is a market that I think will continue to be a very noisy place to be, and it does make a certain amount of sense that we would see a bit of hesitation, as silver is considered to be a very risky asset at times.

All things being equal, this is a scenario where silver continues to see a lot of noise right around the 200-day EMA, as one would expect but also the $26.50 level underneath, I think, becomes a major factor of support as well, extending down to the 61.8% Fibonacci retracement level. All things being equal, I do think this is a market that will try to sort itself out over the next couple of weeks, but keep in mind silver is an industrial metal, and thus it’s not the same thing as gold. It’s not necessarily a safe haven.

It can be at times, but over the longer term perspective, that’s definitely not what silver is. So with that being said, I think you have to be cautious. But if we can stay above the 200-day EMA and perhaps get a little bit of a bounce, we could recover back towards the $28.50 level. If we break down below the $26.50 level, then I think silver is in pretty serious trouble.

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