Silver Price Forecast – Silver Continues to Rally

Silver Markets Technical Analysis

You can see we continue to see a lot of upward pressure in general, and I do think at this point you have to look at Silver as likely to go running towards the $26 level. That being said, I think you’ve got a situation where short-term pull backs continue to be thought of as buying opportunities if you get them.

The $24.50 level underneath should be a support level that I think a lot of people will be paying attention to, especially after that massive candlestick on Wednesday. All things being equal, I do think this is a situation where you’re just looking for value and trying to take advantage of it. Now, the question is, can we break above $26? I don’t know because silver has a really hard time following gold once we get truly parabolic.

This is mainly because there have been multiple scandals, like JPMorgan Chase, of rigging in the silver market, and there’s no sign that that’s stopped. The CFTC has fined them millions of dollars multiple times, but considering how much they make doing it, they will continue to do it. So therefore, I think 26, maybe $26.50 is about as good as it gets, but that doesn’t mean you can’t make money along the way.

You just simply take short-term pullbacks and use them to your advantage. From a longer term perspective though, I still like gold better than silver, mainly because silver is so volatile. It’s also an industrial metal, so it does behave a little bit on the fickle side occasionally. But as things stand right now, it is moving lockstep with gold. It continues to pay attention to lower interest rates around the world coming, and possibly an economic growth situation where it spurs demand later this year. We’ll see. But when you look at the longer term charge, $26 is very tough to crack.

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