Silver Weekly Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Weekly Technical Analysis

The silver market initially plunged during the week, breaking well below the $28.50 level before turning around and showing signs of life. By doing so, this is a market that looks as if it is trying to bounce enough to continue going higher, and it’s probably worth noting that the 38.2% Fibonacci retracement level is offering support right around that crucial $28.50 level.

The fact that we are trying to form a hammer does suggest that there’s at least a certain amount of support, but even if we break down from here, I think the 50-week EMA and the 50% Fibonacci retracement level are both areas that you need to watch for support as well. Keep in mind that silver is highly sensitive to the US dollar and of course interest rates as the silver market is not only a precious metal, but it is also an industrial one and therefore risk appetite and global growth both come into the picture to give you a push one way or the other.

If we break down below the $26.50 level, then I think the uptrend might be over, but it certainly looks like we are trying to pressure to the upside and try to get back to the $30 level. If we do, and we clear that $30 level, that opens up more of a buy and hold scenario. But silver is going to remain volatile. It is almost always volatile. It’s almost always dangerous to get too big into a position. So, make sure your position size is reasonable.

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