Silver Price Forecast – Silver Continues to See Stabilization on Monday

Silver Markets Technical Analysis

The silver market initially rallied during the trading session on Monday but gave back the gains as we have seen metals turn things around, only to somewhat stall. I think that does make a certain amount of sense though, because we have seen such a massive amount of selling pressure that eventually had to give up some of its drive. I think at this point comes the realization that we are still very much in an uptrend. So, I am looking for a buying opportunity of sorts, but I’m not necessarily looking for a huge move, at least not in the short term.

I believe that silver needs to tackle the $28.50 level in order to truly take it off to the upside, perhaps opening up a move to the 50-day EMA as well as the $31.50 level. A breakdown below the lows of the previous week could open up a drop to the 200-day EMA, which is somewhat close to the $26.50 level.

And that area has been important more than once. So, I think it does make a certain amount of sense that it would be the floor in the market. All things being equal, I am looking for a value play here to start buying silver, but I would do so with a small position because of the massive amount of volatility that this market comes with, and the ability to shake traders out in this market is well-known.

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