Silver Weekly Price Forecast – Silver Continues to Look Bullish

Silver Markets Weekly Technical Analysis

The silver market initially pulled back during the week but tested the $24.50 level only to show signs of strength. At this point it looks like the weekly chart is carving out a consolidation area between the $24.50 level underneath and the $26 level above. These two levels continue to see a lot of attention and there will be a lot of attraction to them, and any move towards them will cause a reaction.

If we break above the $26 level is likely that the market could go much higher, perhaps even to the $28.50 level, while underneath we have a lot of support, but if we were to break down below the lows of the week, then we could go looking to the $23.50 level. In general you need to pay close attention to the overall noisy behavior but keep in mind silver is a little bit different than gold in the sense that it’s highly manipulated in the paper market and therefore the barrier at $26 is probably going to be very difficult to break above. Speculation in the futures market has commercials heavily short of the silver contract, so I think we squeeze in this little area for a while.

I don’t necessarily think we’re going to break out easily. If you’re looking to play the precious metals trade in gold, it’s not here. Remember that the silver market continues to see a lot of volatility and noise. The silver market also has a lot to think about when it comes to industrial demand, which is part of what this market pays attention to in reference to “green technology.”

For a look at all of today’s economic events, check out our economic calendar.