Silver Price Forecast – Silver Continues to See Noisy Trading

Silver Markets Technical Analysis

Silver pulled back just a bit during the trading session on Wednesday as we are testing the overall highs. The $32.50 level above has been a significant barrier and I think at this point, we have to look at it as a short-term ceiling. Given enough time, I do think we break above there.

But in the short term, it looks like we need to pull back a bit to find our footing. Ultimately, I do think we go higher, like I said, but I also recognize that you need to see a short-term pullback that shows hints of a bounce. In that environment, you really could start to take off to the upside, but I want to find value. Silver is a market that is extraordinarily volatile under the best of circumstances anyways.

So, none of this should be a huge surprise. I believe that the $30 level continues to be a massive floor in the market, which is something that we need to pay close attention to. If we were to break down below the $30 level, it would obviously be important. That large round psychological area would have a lot of people covering long positions. At this point, if we can break above $32.50, it does open up the possibility of a move towards the $35 level, but I also recognize that silver can be just wild, so you have to be very cautious with how you trade it. Given enough time, I do think silver moves right along with gold in a hard asset rally. It seems like most hard assets are finding plenty of buyers.

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