Silver Price Forecast – Silver Pulls Back in Consolidation

Silver Markets Technical Analysis

The silver market has gone back and forth during the course of the last couple of weeks and Wednesday sees a bit of selling. At this point in time, I think silver also should be paid close attention to due to the fact that I believe we are in the midst of forming some type of base. You can also make an argument that perhaps we are looking at this through the prism of whether or not traders will see the $30 level as being psychologically important enough to hold things, of course, we have the uptrend line, and we are between the 50 day EMA above and the 200 day EMA underneath.

If we can break above the $31.40 level, then I think it allows the market to finally take off. In general, if we can break above there, then the $35 level is going to be your longer term target. If we were to break down below the 200 day EMA that could change some things, but If that happens, I suspect you’ll probably see the US dollar swallowing everything. Now it’s worth noting that the recent rally, at least until the last couple of weeks, has followed right along with a rally in the greenback. So that’s not the be-all, end-all at this point.

I do think that we are in the midst of trying to form some type of bottom and maybe by the time we get through this week with jobs number and everything else, we might see some upward trajectory, but as things stand right now, it’s more or less a range bound trade trying to set up for a bigger move.

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