Silver Price Forecast – Silver Continues to See Selling Pressure

Silver Markets Technical Analysis

The silver market dropped a bit during the early hours on Wednesday as it looks like we are testing the 50 day EMA. All things being equal, this is a market that continues to see the $32.50 level above as a major barrier, and we have in fact essentially just formed a double top.

Whether or not that holds remains to be seen, but I would say this, if we were to break above the $32.50 level, the market will probably scream to the upside. This pullback does make a certain amount of sense and with the 50 day EMA and the $30 level all coalescing in this same area, I think you’ve got a situation where people will be trying to find a bit of value and cheap ounces of silver as it were.

All things being equal, this is a market that I do think will continue to move counter-cyclically to interest rates and perhaps the US dollar. The market continues to be bullish, I believe, longer term, but silver is a very volatile market, and you have to keep that in the back of your mind. You have to keep your position size reasonable, jumping “all in” right away is a great way to lose a ton of money in the silver market. If and when we do finally break above the $32.50 level, then the next target for silver in my estimation based on historical charts would be the $35 level.

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