Silver Price Forecast – Silver Continues to See Pressures

Silver Markets Technical Analysis

The silver market has found even more negativity, but I think at this point, we have to look at this through the prism of a support level that’s being tested. The support just below, at the $26 level, I think is going to be crucial. If silver can hold on to this area, then I think we could see a resumption of the overall uptrend. Keep in mind that the $26 level had been major resistance previously, so it should be support now based on market memory. Furthermore, we also have the 50-day EMA hanging around in that area, so that’s yet another reason to think that maybe buyers will be interested.

Keep in mind that Friday is the non-farm payroll announcement and that has a major influence on what people think the Federal Reserve will do. But quite frankly, we just had a Federal Reserve press conference and if Jerome Powell said one thing, it was probably that he doesn’t know what he’s doing. So, it’ll be interesting to see how Silver behaves. This is an area where you would expect to see a lot of support.

If we break down below the $26 level, then it’s possible that we could go looking to the $24.50 level underneath. In general, I think this is a situation where you have a lot of noise, but if we do hang on to this area, it could be an excellent entry point for a medium-term trade. The $28.50 level above is a major resistance barrier and the top of this overall range that I think we will probably be stuck in.

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