Silver Weekly Price Forecast – Silver Takes Off for the Week

Silver Markets Weekly Technical Analysis

Silver has rallied rather significantly during the course of the week, as we have broken back above the $28.50 level then broke above the $30 level after that. All things being equal, this is a market that I think continues to see a lot of buyers in. The massive candlestick that we have seen typically doesn’t happen in some type of a vacuum, but we are so overbought just in the last couple of days, it’s almost like we need to have a short-term pullback in order to continue to find buyers. I could be wrong, but typically that’s how markets behave.

The $28.50 level should be support, at this point in time, as long as we can stay above there, I think the market will go much higher. The $32.50 level is an area where a lot of traders will be paying close attention to, as it is a major swing high, and breaking above there probably brings more FOMO into the market. A lot of this is predicated on the idea that the Federal Reserve is going to start cutting rates, and therefore the US dollar gets eviscerated. That being said, I think it’s a little overdone from that standpoint.

The question then becomes whether or not the overall liquidity measures from the Federal Reserve could devalue the currency markets enough to get people looking for other assets. And silver of course being a precious metal would enjoy a little bit of strength from that. Regardless, I don’t have any interest in shorting this market. I think short-term pullbacks are probably buying opportunities for longer-term traders.

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