Silver Price Forecast – Silver Pulls Back From Highs

Silver Markets Technical Analysis

Silver pulled back just a bit during the early hours on Wednesday as we may have gotten a little bit ahead of ourselves yet again. When I look at the moving average convergence divergence indicator, we are clearly showing signs of divergence from April. So, I do think that a pullback makes quite a bit of sense. Whether or not that pullback leads to some type of massive shorting opportunity, I don’t know, but I think it does lead to a pullback that will be worth watching.

Maybe we will get a pullback towards the $31 level and a bounce. If we do, then I think it’s a continuation of the market going higher. If we can break above the $32.50 level, then we could really start to take off to the upside, perhaps reaching towards the $35 level. The size of the candlestick on Tuesday was extraordinary, and therefore it does suggest that there are plenty of buyers underneath given enough time.

Even if we break down from here, the $30 level, I think is also massive support with the 50 day EMA coming into the picture. Remember, silver is getting a bit of a boost due to the Federal Reserve cutting rates and the shrink in the US dollar, but the US dollar’s oversold. So this all lines up quite nicely. And therefore, I think a little bit of a pullback in silver and maybe a little bit of a gain by the US dollar probably tracks fairly well.

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