Silver Price Forecast – Silver Continues to See Noise

Silver Markets Technical Analysis

The silver market has been going back and forth during the course of the trading session on Friday, but it does look to me like the market is trying to sort out whether or not we can continue to go higher. We are hanging around the 50 day EMA, and the 50 day EMA is of course an area that a lot of technical traders pay close attention to. We are above the $28.50 level, which of course is an area that previously has been both support and resistance.

And with that being the case, if the market continues to go higher and breaks above the highs of the Wednesday session, then it’s possible that the market could go looking to the $30 level. The market pulling back at this point in time offers quite a bit of support all the way down to the $28 level. In general, this is a market that has seen quite a bit of volatility in the past, and I think it will continue to be the case going forward.

Keep in mind that silver is not just a precious metal, but it is also an industrial metal. So, there’s a lot of push and pull here because we aren’t really sure where the global economy is going. And if it does in fact start to shrink from here, it’s very likely that demand for silver will as well. On the other hand, you have the U.S. dollar shrinking, and that does help silver, and so will falling interest rates. So, I think we see more of the same type of action.

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