Silver Price Forecast – Silver Continues to See Overhead Resistance

Silver Markets Technical Analysis

The silver market has been all over the place in the early hours on Wednesday, but now that CPI has come out at 0.2%, instead of 0.3%, month over month, has provided a little bit of a boost for the silver market. Nonetheless, we still are in the same situation as we have been for a while where we are just basically banging around the $30 level. It’s really not until we break above the $31 level that I feel comfortable getting long of silver. At that point, I would expect to see some momentum working its way into the market as well.

After all, silver is one of the more volatile markets that I cover and of course, it is also a market that I think, quite frankly, is going to continue to be somewhat difficult to get your hands around because of the interest rate situation in America. At this point in time, the 50 day EMA does come into focus. You also have the previous uptrend line that you need to watch out for as well. So, it’s really not like said, until we get to $31 that I’m overly impressed.

Short-term pullbacks should see the 200 day EMA as support, right along with the double bottom here at the $28.75 level. If we break that, look out below. We could see a massive drop at that point if it were to happen. While I am not expecting this, the possibility is still there.

For a look at all of today’s economic events, check out our economic calendar.