Silver Price Forecast – Silver Continues to See Overhead Resistance

Silver Markets Technical Analysis

The silver market has pulled back just a bit during the course of the early hours on Monday, and therefore it looks like we are trying to form a bit of a double top. The double top of course is a major technical barrier that a lot of people would be paying attention to, but ultimately, I don’t necessarily think this is the end of the uptrend in silver. Rather I think it’s just the perfect place for the market to pull back in order to find value. I recognize that the 50-day EMA is sitting just above the $30 level.

And I do think that the $30 level will attract a lot of attention. Whether or not we even get there, I am looking for signs of a bounce to take advantage of so I can pick up cheap silver. If we can break above the $32.75 level, it’s likely that the market will try to go higher, at that point I would anticipate silver to start looking towards the $35 level.

Inflation isn’t going anywhere, and that does help gold and silver, both, and therefore, I think you’ve got to look at it through that prism. The U.S. dollar was a little oversold. So, the silver market giving back some of the gains while the U.S. dollar picks up a little bit of strength makes a certain amount of sense. But overall, the momentum seems to be favoring silver.

In theory, we do have divergence on the moving average convergence divergence indicator from the most recent high to the one we made back in the month of May, but at this point in time that doesn’t necessarily mean anything. We haven’t seen a massive move downstairs. Upstairs, on the other hand, if we break above that shooting star from the Thursday session, then we will continue to climb much higher, again, to what I believe will be the $35 level.

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