Silver Price Forecast – Silver Continues to Show Noisy Behavior

Silver Markets Technical Analysis

The silver market initially rallied during the early hours on Wednesday to reach the 50 day EMA indicator. That indicator offered a bit of resistance. So, I think at this point, it does make a certain amount of sense that traders would be looking for a reason to take some profit. CPI came out at 0.3% month over month instead of the expected 0.2% and that had people running to the dollar at least in the initial knee-jerk reaction.

Whether or not that holds remains likely to be a question going on over the next couple of days, but I can already see that we are trying to fight our way back to the upside. If we can close above the 50-day EMA, that would be the first major hurdle overcome. And then at that point in time, we could be looking at a move to the $30 level.

Anything above the $30 level then opens up a much bigger move. Short-term pullbacks at this point in time, I think, still continue to have a lot of support near the $27.70 level, and then again, down at the 200 day EMA, which happens to coincide with the 50% Fibonacci retracement level. This is a market that’s just going to continue to be very noisy, but it does look like every time it dips, there are people out there willing to step in and at least try to pick up cheap silver along the way.

For a look at all of today’s economic events, check out our economic calendar.