Silver Price Forecast – Silver Continues to Test Trendline Area

Silver Markets Technical Analysis

The silver market pulled back just a bit during early trading on Tuesday as it is now threatening a significant uptrend line. The uptrend line of course is something that we’ve been paying attention to since February. So, it’s very interesting that we now find ourselves testing that again and we also have to consider that we are between the 50 day EMA and the 200 day EMA indicators, which typically means you are in an area that will get some type of reaction.

Further impressing upon the mind of the trader is the $30 level sitting here offering potential support. We have recently seen a significant bounce towards the $32.50 level but have given those gains up. I’m not necessarily ready to call for shorting this pair or yeah, this pair yet. But really at this point, I think you have to pay close attention to the fact that we are forming a bit of a potential head and shoulders.

So, a breakdown below the 200 day EMA may kick off pretty significant selling. The 10 year yield in America reached 4.5% yesterday and as the real yields tend to rise, despite the fact that the Federal Reserve is cutting rates, that can cause chaos. Silver, of course, is especially sensitive to these types of things. So, keep that in mind.

I’ll be watching to see if there’s a bounce, but I suspect that the culmination of what’s happening here is probably going to be seen Thursday with the Federal Reserve announcement.

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