Silver Price Forecast – Silver Continues to Show Volatility

Silver Markets Technical Analysis

Silver has been fairly noisy in the early hours on Thursday, pulling back a bit as we continue to just simply chop right around the $31.50 cents level. The market has shown quite a bit of resistance at the $32.50 level, and I think at this point, you need to look at it through the prism of trying to build up the necessary pressure to break out. If and when we do, then it’s likely that we will continue to go much higher. In the short term, though, I anticipate this being a very noisy market, and short-term pullbacks make a certain amount of sense, as we are trying to build up the necessary pressure to finally make that breakout.

A pullback at this point in time could drop all the way down to the $30 level and still really do not change much. In fact, right around the $30 level, we have the 50-day EMA, which of course is an indicator that a lot of people pay close attention to. In general, this is a situation where market participants will continue to look for short-term pullbacks as value as it could represent cheap silver.

Pay attention to the US dollar. There is a bit of a negative correlation and of course interest rates, but also you have to keep in mind that the industrial usage scenario in silver is a major influence. So, it’s not gold, although it does tend to move in the same overall direction, there are different fundamental factors that will move this market. Keep your position size reasonable. Silver can be very wild.

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