Silver Price Forecast – Silver Continues to See Resistance Above

Silver Markets Technical Analysis

The silver market has fallen a bit during the early hours on Tuesday as we continue to see a lot of resistance near the $32.50 level, an area that has been significant resistance multiple times. The $32.50 level, of course, is an area that has a certain amount of market memory attached to it. So, at this point in time, the market opening up above there could really start to have a lot of people getting involved in FOMO trading.

Short-term pullbacks at this point in time open up the possibility of a move down to the $30 level where the 50-day EMA currently resides. The $30 level, of course, is a large, round, psychologically significant figure, so it does make a certain amount of sense that people would be paying attention to it for potential support. Keep in mind that silver does tend to move with risk appetite, and if risk appetite really takes it on the chin, it’s possible silver falls.

Furthermore, if the US dollar starts to strengthen, a lot of times that will work against silver as well. Silver is also an industrial metal, so it’s not just about interest rates and currency. Sometimes it’s about use case scenario, so we’ll have to wait and see how that plays out, but right now it looks like we’re in the midst of trying to make a massive double top. Whether or not that ends up being the case remains to be seen, or the other scenario is we just simply bounce around here and build up enough inertia to finally take off to the upside and continue the overall uptrend. Stay tuned, this is going to be a very interesting market.

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