Silver Weekly Price Forecast – Silver Continues to See Volatility

Silver Markets Weekly Technical Analysis

You can see silver has gotten crushed this week. That being said, I think you also have to take a look at this through the prism of a market that reached a major resistance barrier, and therefore it makes a lot of sense that we would see things pull back from there.

The question, of course, is whether or not we see buyers come back in. I don’t know if it’s going to be easy. I do believe that the $26 level underneath is a significant area that previously had been resistant, so I think should have certain market memory attention. If we give up $26 and fall from there, it’s likely that we could go down to the $23.50 level.

That would be a very negative turn of events. That being said, if we can turn around and break above the $28.50 level, the market could go looking to the $30 level. The $30 level is an extraordinarily large round figure that is paid close attention to and an area that has been important for decades. So, if that’s the case, we were to break above $30, which is something we have only done a few times over the last several decades. In other words, this is a rarity.

You’d have to think that there would be some type of massive, short covering rally. I don’t think that will happen anytime soon, but in the short term, I think there could be a little bit of a buying opportunity on the bounce. Again, as long as we can stay above $26.

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