Silver Price Forecast – Silver Continues to Show Volatility

Silver Markets Technical Analysis

The silver market has pulled back just a bit during the early hours on Tuesday as we continue to see a lot of noisy behavior and I think that given enough time we will more likely than not try to reach the $28.50 level. At this point in time the 200-day EMA underneath is probably going to continue to offer support right along with the $26.50 level.

In general, I think you’ve got a scenario where the market is going to continue to be very volatile, and that does make a certain amount of sense considering that silver is inherently volatile. Furthermore, you have to keep in mind that the market is likely to see a lot of noise out there when it comes to interest rate policy coming out of the central banks, and furthermore, the overall industrial demand, because remember, silver is an industrial metal as well as a precious one, and probably more so industrial than precious.

So, with that being said, it does tend to generally follow the gold market, but not necessarily tick for tick. I think at this point in time, it is a little bit of a laggard, but that does make a certain amount of sense, considering that the global economy seems to be slowing, so the demand for silver could drop, at least in that part of the equation. If we were to break down below the $26 level, then I think the market completely folds apart. If we can break above the $28.50 level, then I think silver really starts to take off to the upside.

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