Silver Price Forecast – Silver Jumps During Early Futures Trading

Silver Markets Technical Analysis

Silver rallied rather significantly during the early hours on Thursday as the futures market jolted to the upside after we had seen the ECB cut rates rather aggressively and unanimously. With that being the case, it does look like we are going to try to break out to the upside and reach the $30 level. And the $30 level, of course, is an area that a lot of people would obviously have as a large round psychologically significant figure and an area that you’re probably going to see a lot of options barriers.

Short-term pullbacks at this point in time should continue to see buyers near the $28.50 level and perhaps above there at the 50-day EMA. Silver, of course, is very volatile and keep in mind that it is not only a precious metal, but it is also an industrial one and that has major implications on how it behaves.

I do think that given enough time; this is a market that will have to challenge $30. And once it does, then we have the ability to see whether or not we can truly take off. With central banks around the world cutting rates, it’s very likely that traders will continue to look at this through the prism of perhaps trying to find cheap silver and riding out the volatility along the way. Always make sure to protect your account when trading this asset, as it can be very dangerous at times as it tends to move very rapidly and sometimes very suddenly.

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