Silver Price Forecast – Silver Attempts to Salvage Upward Momentum on Friday

Silver Markets Technical Analysis

The silver market has dropped to the 50-day EMA over the last two trading sessions and now it looks like we are starting to see a little bit of recovery here and perhaps an attempt to get back towards the $30 level. The $30 level of course is a large round psychologically significant figure that a lot of people will be paying attention to. So therefore, I think you’ve got a situation where you were just simply looking to try to push this market there.

The $28.50 level is a support level that I think is crucial. It is a resistance barrier from previous. So, I do think a certain amount of market memory comes into the picture here. The pullback is fairly steep, but then again, the shot higher was fairly steep as well. You could make an argument for, you know, some type of Fibonacci retracement either from the bottom, basically lining up with the $28.50 level as the 38.2 Fibonacci retracement level, or you can look at the 61.8% Fibonacci retracement level from the shot higher when we took off from the $26 level.

That being said, this is a market that I do think favors the upside overall, and we will have to look at it through that prism. I have no interest in shorting silver, at least not until we break down below the $26 level, which at that point we would be challenging the 200 day EMA. So, it remains buy on the dip, but I think it’s very noisy. It’s not something that’s going to be easy to hang on to.

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