Silver Price Forecast – Silver Continues to See Volatile Moves

Silver Markets Weekly Technical Analysis

The silver market has been dreadful this week, and now it looks like as we head into the weekend we are threatening the $28.50 level, which is an area that previously had been massive resistance. So, a little bit of market memory more likely than not comes into the picture and a bounce is something that may happen. But if we were to break down below the $28 level, then it’s likely that silver could go dropping down to the $26 level. Keep in mind that silver is highly sensitive to the US dollar and interest rates as well as risk appetite.

Gold also has sold off and it’ll be interesting to see if that continues to drag things down. But as things stand right now, silver is threatening significant support. If we do bounce from $28.50, then it’s likely that we could go looking through the $30 level. This is a market that I do think is at a crossroads.

So, it’ll be interesting to see if we can hang on to this. We certainly have enough technical support underneath to at least attract a certain amount of attention. The next couple of days, and therefore the next weekly candlestick, is going to be crucial, and could determine where the trend goes, or whether it just completely implodes. I’d be very cautious, and I would be hesitant to put a bunch of money into this market right now as silver, although still technically bullish, has certainly seen a lot of negativity this week.

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