Silver Price Forecast – Silver Slows Overnight

Silver Markets Technical Analysis

The silver market has initially tried to rally a bit during the trading session on Tuesday, but I think with CPI coming out on Wednesday a lot of traders are probably a little hesitant to continue to push to the upside. That being said, I do think that we will be more or less a buy on the dip type of scenario. So, with this, I think you’ve got a situation where the 50 day EMA underneath probably offers support and then you have the $31 level offering support.

After that, then you have the $30 level that is a large round psychologically significant figure, an area that’s been very important multiple times and of course is backed up by an uptrend line and the 200 day EMA. This is an area that will attract a lot of attention from technical traders.

In general, this is a market that I think continues to see value hunting and given enough time probably goes looking to the $35 level, the $35 level was a swing high and now it looks like it will be a target. If we were to break down below the 200 day EMA, that would more likely than not be a situation where silver plunges, you’d probably have the US dollar swallowing everything, and you’d probably see gold falling as well. I don’t think that happens, I think in the meantime, you’re just looking for value and taking advantage of it each time it appears in this market.

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