Silver Price Forecast – Silver Continues to Struggle

Silver Markets Technical Analysis

The silver market initially did try to rally a bit during the trading session on Friday, but it looks like the $30 level continues to be a major problem. At this point, the market is simply hanging around the 200 day EMA, which of course is an indicator that a lot of people pay close attention to, and therefore it does make sense that we would see a lot of noise in this general vicinity.

However, it’s worth noting that we just can’t seem to fight the slippery slope higher and therefore I’m starting to get a little bit concerned about silver. I’m not ready to short the market yet. I think we would make a fresh new low right around the $28.70 level before I would start doing so.

However, it is worth noting that interest rates in the United States continue to climb, and that of course works against silver. Silver is an industrial metal as well as a precious metal and if there are concerns about the price of money strangling investment in major infrastructure or possibly just major industrial companies, that could have an effect on silver. That being said, if the market were to turn around, and recapture the previous trend line, somewhere around the $30.50 level, then I might be a little bit more inclined to buy silver.

There is going to be a serious lack of liquidity this time of year though, and that’s something that you cannot ignore. I’m very cautious with silver right now, and quite frankly, don’t want to be bothered with it. I will let the market tell me which way it wants to go and simply follow.

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