Silver Price Forecast – Silver Continues to See Pressures

Silver Markets Technical Analysis

Silver has gotten crushed during the early hours on Monday to reach the crucial $26.50 level. The $26.50 level is an area that’s been important more than once. And it looks as if we are slicing through the 200 day EMA. With this type of beating right away in the day, one would expect there is going to be a little bit of a bounce, but I don’t know that I’d be a buyer of the bounce. In fact, I think at this point in time, it looks very likely that we are going to break through the support area.

If we do break down below there the 61.8% Fibonacci retracement level comes into the picture for support. If we break down below there then the market will more likely than not make a complete round trip and then I think at that point in time silver really falls apart, it does make a significant amount of sense that it will struggle in this environment because it is most certainly risk off and of course silver is not gold something a lot of traders forget however if we were to turn around and wipe out this candlestick that would be an extraordinarily bullish turn of events I don’t think that’s going to happen in the next couple of days so i think at best you’re on the sidelines letting silver stabilize a bit before you put any money to work.

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