Silver Price Forecast – Silver Continues to See Pressures Above

Silver Markets Technical Analysis

The silver market rallied pretty significantly during the early hours on Friday, but as you can see, we are struggling with the 50 day EMA, a previous uptrend line, and an area that’s been noisy to begin with anyway. So, with that being said, it’s not overly surprising that yet again, we see overhead pressure.

The question is whether or not silver can continue to go higher, but it’s worth noting that the jobs number on Friday has basically thrown the markets into complete disarray as they try to determine whether or not stronger jobs numbers are going to end up being a good thing. Anybody who lives in the real world would know that it is, but this is all about the Federal Reserve interest rates. Will they stay higher? That kind of thing. The usual liquidity whining that you get in the markets.

So, keep in mind that silver is very sensitive to interest rates and if that’s going to be the case, it could continue to provide a little bit of an overhang. However, it’s worth noting that precious metals have actually gone in the opposite direction of what you would think. So interestingly enough, this is a situation where I think traders are really stuck and don’t know what to do. I think we’re still in an area where we have to prove ourselves.

Again, I had previously said we need to get $31 in the rear view mirror to get bullish. I think that’s still the case. A breakdown below the $30 level could open up a move down to the 200 day EMA. But right now, this is one of those times where when things don’t make any sense and they’re just absolute chaos, you have to step away.

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