Silver Price Forecast – Silver Continues to Threaten The Same Level

Silver Markets Technical Analysis

The silver market has pulled back from the crucial $28.50 level, an area that has been important more than once. Because of this, it’s not a huge surprise to see that perhaps we may have to take a little bit of a breather as market participants do tend to pay attention to the same levels over and over. Furthermore, just above the $28.50 level, we have the 50-day EMA, which of course could cause a certain amount of resistance as well.

If we do pull back from here, keep in mind that the 200 day EMA is closer to the $27 level and at this point in time I think you’ve got a situation where traders will look at this through the prism of squeezing between two major indicators and therefore you have a scenario where people are just simply trying to sort out what it is they’re doing next, but it is worth noting that until recently, silver has been very bullish. Keep in mind that silver is highly sensitive to risk appetite. So, you will have to pay attention to other markets around the world.

And as a result, you will also have to pay attention to whether or not people are buying riskier assets on the whole. In the short term, it looks a lot like a market that’s probably more or less going to be buy on the dip, but we need some type of fundamental reason, or perhaps even FOMO to get the market to jump above the $28.50 level and more importantly, the 50 day EMA. If and when it does, the market is likely to go looking to the $31 level.

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