Silver Price Forecast – Silver Continues to See Supportive Action

Silver Markets Technical Analysis

Silver initially pulled back just a bit during the early hours on Monday, only to find buyers again as it looks like we are in the midst of some type of bottoming process. If we can rally from here, and it certainly looks like we very well could, breaking above the $30 level almost certainly would bring in quite a bit of FOMO trading, and I think a lot of people would jump into silver at that point.

It’s worth noting that just below, we have the 50-day EMA that a lot of people have paid close attention to. And then again, we have the $28.50 level, which is an area that I think a lot of traders will look at through the prism of being important, mainly due to the fact that it was previous resistance and therefore it should have a lot of market memory attached to it. Because of this, I do think that there is a bit of a floor in this market.

And I think that as long as we stay above that floor, you’re still looking at a buy on the dip type of situation, but it’s going to be very choppy and noisy. Again, if we were to break above the $30 level, that could change in the sense that it could be a major shift in the momentum and perhaps get a lot of people jumping in. But right now, this is a market that looks like it’s trying to find its footing before perhaps bouncing yet again.

Remember, once we broke above the $26 level, we entered an area that typically has a lot of volatility and then eventually some type of horrifically volatile resolution where we go in one direction or the other. In the past, it’s been racing towards $50 only to collapse at that point, so we’ll have to see how this plays out.

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