Silver Price Forecast – Silver Continues to See Pressures

Silver Markets Technical Analysis

The silver market initially did try to rally a bit during the Wednesday session but has given back a bit of the gains. The 50 day EMA sits underneath, which of course is a significant support level from a technical analysis standpoint, but if we break down below there, then I think you have to look at this as seeing the $31 level as massive support. On the other hand, if the market were to turn around and rally from here, the $32.35 level continues to be important, and I think it is an area that you have to pay close attention to, as it’s been important multiple times, despite the fact that we recently broke above it.

Silver is still technically in an uptrend. It’s just that we’ve had an ugly pullback, and I think ultimately, we will continue to try to go higher. But if we were to break down below the $31 level, then I would question the overall trend and be a little bit more cautious. If the market were to turn around and rally above the $33.33 level, then it opens up silver for a move to the $35 level, which I do believe it could happen given enough time.

I just think that silver obviously has a lot of noise around it when it comes to the fact that it is not just a precious metal, but it is also an industrial metal that moves up and down with the economy. So be cautious and keep in mind that silver is a bigger contract than gold most of the time, depending on where you’re trading it. So, you have to keep your position size reasonable.

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