Silver Price Forecast – Silver Continues to See Volatility in Pullback

Silver Markets Technical Analysis

During the trading session on Tuesday, we’ve seen an absolute collapse of risk appetite. And that of course has a major influence on silver. Nonetheless, it does look like we are trying find a little bit of support in this area just below the $30 level. And of course, $30 is a large round figure that a lot of people will be paying close attention to. At this point, any bounce will more likely than not bring in a lot of traders who believe in the silver market going higher, as it has been so explosively bullish.

It is an explosive market to say the least, and it does get quite volatile at times, so do be aware of that. If we can close above the $30 level, that would be the first signs of strength, and at that point, I think we could see a move, at least an attempt, to get back to the $32 level. If we break down from here, it’s possible that we could drop to the $28.50 level, where we not only have previous support and resistance, but we also have the 50-day EMA.

In general, this is a market that I think remains positive, but is starting to come back a little bit from its overextended behavior. I certainly don’t feel like shorting this market right now with the type of momentum that it has seen, and therefore it is likely to see a lot of noise, but I also think there is the very real possibility of wild swings.

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