Silver Price Forecast – Silver Continues to Look Bullish Despite Pullback

Silver Markets Technical Analysis

Silver pulled back just a bit during the early hours on Tuesday as you would expect due to the fact that we had such an explosive Monday. That being said, I do think there is probably only a matter of time before we could see buyers jump in to try to pick up cheap silver. And that is more likely than not the play here.

You just simply wait for some type of value that come into the marketplace and then take advantage of cheap bars of silver. The 50-day EMA sits right around the $26 level and therefore I think the $26 level is a crucial support level that a lot of people are going to pay attention to it. Furthermore, the $26 level is an area that previously had massive resistance so a lot of market memory I think is the key. The $28.50 level above is of course an area that previously has been resistance before. So therefore, I think you’ve got a situation where traders are just simply looking at this as a range that we are going to trade in for the foreseeable future.

After all, there is still a lot of demand for metals right now and that is working against them. So, I think we’ve got a lot of noisy back and forth trading just ahead of us and we are basically in the middle of it. So, I’m waiting for some type of sell off, a bounce, and then I would get long. Above the $28.50 level, there is a massive amount of resistance extents all the way to the $30 level. So, I’m not looking for a longer term buying hold situation. I’m looking at it through the prism of trading this range.

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