Silver Price Forecast – Silver Continues to See Volatility And Upward Pressure

Silver Markets Technical Analysis

The silver market initially fell during the trading session on Tuesday but has turned around to show signs of life again, as it looks like we are recovering after CPI numbers came out just a little bit hotter than anticipated, but nothing drastic. So, because of this, it looks like we are trying to take out the highs here. And if we can take out the wick from Friday, it’s very likely silver will go looking to the $26 level.

Ultimately, precious metals have been on fire as of late, so that would make a certain amount of sense anyways, so we’ll have to see how that plays out. Short-term pullbacks for my money continue to be bought into it as we obviously have so many buyers out there to begin with. The $23.50 level underneath, I think, is an area you need to pay close attention to as it had been previous resistance, and it should now be support.

With that being said, I like the idea of taking advantage of any value that occurs, but I also recognize that silver is extraordinarily volatile, so you do need to be cautious at this point in time because silver can really be dangerous. I think eventually we will go looking toward the $26 level, that’s probably the high that will contain the market. We are a little overdone at this point, but ultimately it will be all about momentum more than anything else.

So be cautious of short-term pullbacks, but those should offer plenty of value. I have no interest in shorting metals at the moment, as it looks like the US dollar is going to continue to take it on the chin overall. Expect volatility, and of course we have PPI on Thursday, which could cause some issues, but really at this point in time, it looks like we are going to continue to power higher.

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