Silver Price Forecast – Silver Continues to Sell Off

Silver Markets Technical Analysis

Silver plunged during the course of the trading session on Friday as it looks like we are struggling to find our footing. At this point, we are more likely than not going to be testing the $28.50 level, which is an area that previously had been supported, an area that I think not only has shown a lot of resistance and support, but also is probably backed up by a lot of options trading. If the market were to turn back around and show signs of life, this could be an excellent entry, but it looks at this point in time, like traders are dumping precious metals.

This is a very ugly turn of events so before you get involved you need to see the market react positively to the $28.50 level. Some type of bounce and follow through on a shorter term chart is probably what I’ll look for but quite frankly to jump into this before the weekend is a bit dangerous so what I’m hoping to see is some type of bounce during the day on Friday, and then a little bit of follow through on Monday to take advantage of.

Silver is a very volatile market, and therefore you need to be very cautious with your position sizing as usual. If we were to break down below the $28 level, at that point in time, things could get rather rough and negative, and we could go looking towards the 200 day EMA.

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