Silver Price Forecast – Silver Continues to See Volatile Movements

Silver Markets Technical Analysis

The silver market pulled back just a bit during the early hours on Tuesday, but it does look like there are buyers willing to step in and try to pick this market back up. The $28.50 level is a significant area of noise that we need to pay close attention to. If we can break above the top of the range for the day, then it’s likely that we could go looking at the 50 day EMA. If we can break above the 50 day EMA, then it’s likely that we will go looking to the $30 level after that, an area that will attract a lot of attention.

On the other hand, if we turn around a breakdown below the bottom of the candlestick for the trading session, then I think you’ve got a real shot at the silver market dropping down to the 200 day EMA right around the 50% Fibonacci retracement level of the entire move higher. I do think that we have a situation where silver continues to be very noisy, especially considering that it is driven by the US dollar.

And of course, the industrial demand equation, which is a bit of a mixed bag. So with all of that being said, I think you’ve got a situation where silver is definitely worth watching because if we break below $28, then I think we drop another 50 cents rather quickly. On the other hand, if we turn around and recapture $28, 50 cents, that could be a very positive sign.

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