Silver Price Forecast – Silver Continues to Look Rangebound But Positive

Silver Markets Technical Analysis

Silver has gone back and forth during the early hours on Friday as we continue to bounce around in general, trying to sort out what to do next. All things being equal, silver is a market that I think is going to stay in the overall consolidation range that we have been in between the $22 level on the bottom, and the $23.50 level on the top. This area has been fairly reliable, so I think that a lot of people will continue to respect it in the short term. However, barriers eventually get broken, and this will be a major move waiting to happen.

All things being equal, you should also pay attention to the 50-day EMA, which sits just above, and therefore, if we can break above, there is the possibility that we could go looking to the 200-day EMA. In general, I think this is a market that will continue to move based on the same factors that it has been moving on for a while, and that includes things like interest rate differentials, if interest rates are going higher or lower in the bond market, what the US dollar is doing, the overall risk appetite of traders around the world, and then of course the industrial demand.

In general, this is a situation where it looks like it remains buy on the dip, and you do have to look at it through that prism, I believe, considering just how bullish It had been over the previous couple of days and the fact that we are so close to a major support level. So as long as we can stay above $22, you have to look at this as a scenario where you’re trying to find value. Now, whether or not we can break above the $23.50 level remains to be seen, but I certainly think at this point in time, we are at least going to try to get to that area. If we did break above $23.50, then it opens up the possibility of a move to the $24.50 level.

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