Silver Price Forecast – Silver Continues to See Pressures

Silver Markets Technical Analysis

As you can see on Tuesday, silver has plunged, and it looks like we may go looking to the $26 level before it’s all said and done. Quite frankly, that wouldn’t be a huge surprise because the silver market is one that is a very difficult market to hang on to due to the fact that it is highly manipulated.

After all, paper silver, which is what you are trading, is overabundant and is even overextended. And what I mean by that is that there are more contracts and silver out there than there are ounces of silver. Leaving all of that behind we do recognize that the area at $28.50 that extends up to the $30 level is like a brick wall, and it’s not a huge surprise to see that we have struggled to get above there.

The $30 level, I think, is an area where a lot of people would be willing to jump in and press the issue. Historically speaking, we have only broken above $30 a couple of times, and both times that I can think of off the top of my head, we ran almost directly to $50. That being said, we have a Federal Reserve meeting on Wednesday and that will greatly influence what people think the Federal Reserve interest rate policy will be.

And if it remains tighter for longer, it’s possible that silver will get crushed. Remember, silver is not just a precious metal, but an industrial metal as well. At this point, I think you really have to focus on the $26 level. Due to market memory, the 50 day EMA and the large round figure aspect of it. So, it’ll be interesting to see how we behave here.

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