Silver Price Forecast – Silver Continues to See Turbulence

Silver Markets Technical Analysis

Silver fell quite a bit in the early hours on Monday to break down below the $28.50 level in the spot market. But keep in mind that the futures market has limited trading due to the fact that it was Labor Day in the United States and Canada.

This of course is a major holiday and that means that volume during overnight electronic trading in the futures pits was pretty much the only thing that people had to work off. The normal hours of course are non-existent and therefore we won’t really get a true measure on what’s going on in the silver market until Chicago opens on Tuesday.

The $28.50 level, of course, is an area that’s been important multiple times, and the top of the candlestick for the day is at the 50-day EMA. So those are two things to pay close attention to. If we can break above the 50-day EMA, then it’s likely that the silver market goes looking to the $30 level. If that happens, expect a lot of resistance in that region.

While a breakdown below the lows of the Monday session could kick off a move down to the 200 day EMA, which is closer to the $27.25 level. Ultimately, this is a market that I think is going to continue to be very choppy as it has a lot of external factors pushing it around, the least of which of course would be the US dollar.

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