Silver Price Forecast – Silver Continues to Threaten Massive Resistance

Silver Markets Technical Analysis

The silver market has pulled back just a bit from the $32.50 level, an area that was a major swing high previously, and it’s probably worth noting that we ended up forming a massive shooting star there on Friday. What this tells me is that the $32.50 level will continue to be difficult to break through and it looks like at the moment, traders are simply trying to build up the necessary momentum to finally turn things around and break out.

In the meantime, I think short-term pullbacks will continue to be buying opportunities as market participants are looking for some type of clarity and it’s probably worth noting that the silver market is highly sensitive to interest rates, the US dollar, and of course, industrial demand.

All things being equal, I think the $30 level underneath continues to be a major support level as the 50-day EMA offers support, and I also believe that eventually this is a market that will take off to the upside and go looking to reach the $35 level over the longer term. Expect volatility, but position sizing will be the biggest defense you have against that volatility. Clearly, we are in an uptrend, and I think that will continue to be the case, as traders will look at dips as an opportunity to pick up cheap ounces, just like we have seen in the gold market as well. This is a situation where I think eventually we will have momentum reenter the market sooner or later.

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