Silver Price Forecast – Silver Continues to See Support Underneath

Silver Markets Technical Analysis

The silver market initially fell a bit during the early hours on Tuesday as we continue to see a lot of volatility and chopping in this market. When I look at the chart, the 50 day EMA stands out right away at the $30.25 level. And then again, we have the $30 level, which in and of itself is going to be thought of as a potential support level, not only due to previous action, but the fact that there are a lot of psychological and possibly options barriers in that region. Short-term pullbacks, I think, offer value that traders will be looking to pick up a little bit on the way of cheap ounces.

To the upside, the $32.50 level is a major resistance barrier that we need to pay attention to because if we could break above there, then it allows the market to continue much higher. It would be the beginning of the next leg to the upside. It would not surprise me at all to see the market break out like that, but I think we have a lot of work to do for that to happen.

A lot of digestion of gains, and of course we would need some type of fundamental reason to have people chasing precious metals at that point in time. I think probably the way this works out is gold will lead the way higher and silver will just simply get dragged along with it, because in the current environment, it might be a bit difficult to think that we have a situation where the industrial part of the equation for silver will be the main driver.

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