Silver Price Forecast – Silver Finally Breaks Free

Silver Markets Technical Analysis

The silver market rallied significantly during the early hours on Monday, as we are now well above the $31.50 level, an area that I had been watching. We’re also fairly well past the 50 day EMAs and now it looks like we are starting to finally see some momentum coming into the market. Underneath the current trading area, we have the $30 level offering a massive floor in the market and we had recently formed a bit of a double bottom. This is a good sign and it’s very likely that silver will find that as your hard floor going forward. There’s also an uptrend line that supports silver, so the technical analysis all lines up for higher pricing.

The question now will be about inflation in the United States. Will it work against silver? We’ll see. But also, the silver market is also an industrial demand story as well. And if the economy really starts to take off in the US, silver demand could pick up there as well. So, it’s a bit of a cacophony of noise if you will. Nonetheless, the simplest way to look at this chart is that we’ve been in an uptrend for quite some time and now it looks like we’re going to at least attempt to continue that uptrend. This uptrend is likely to be a bit surprising for some, but when you factor in the idea of the overall trend, as well as the idea that liquidity could drop in a week or so, things could get interesting.

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