Silver Price Forecast – Silver Continues to See Upward Momentum

Silver Markets Technical Analysis

The silver market initially fell a bit during the course of the trading session on Friday, only to turn around and show signs of life. All things being equal, this is a market that continues to look at the $32.50 region as a major barrier and as we head into the weekend, it looks like we are trying to do everything we can to get above there again.

Note that the Thursday candlestick, of course, was a major shooting star, and it does suggest that it is going to be difficult to continue going higher. However, this is also a market that is extraordinarily well-supported, so it’s very difficult to start shorting it.

When I look at the Moving Average Convergence Divergence indicator, we are looking at a little bit of divergence, but that’s not enough to get me to start selling silver. Quite frankly, I would need to see the US dollar strengthen quite a bit in order to get involved in silver. Keep in mind that silver is not only a precious metal, but it’s also an industrial one. So that would be the thing that I think could cause issues as it looks like the global economy is slowing down.

At the same time, those central banks are doing everything they can to liquefy the markets, and if that’s going to be the case, it’s possible that silver gets a bit of a boost due to that. Regardless, I think you are going to see a lot of volatility, and in that, you have to be very cautious as this is an extraordinarily violent and volatile market.

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