Silver Weekly Price Forecast – Silver Bounces After Selloff

Silver Markets Weekly Technical Analysis

The Silver market plunged rather significantly during the course of the trading week to test the 50 week EMA before turning around and bouncing. With that being said, the market is likely to see the $26.50 level continue to offer a massive support level. The 50-week EMA sits right around there, and then the 61.8% Fibonacci retracement level all come together to offer a bit of a hard floor.

That being said, if we were to break down below the $26 level, which is also the 61.8% Fibonacci retracement level, then I think we’re in a serious war to hurt. The fact that we have bounced the way we have suggests that we are trying to form some type of trading range. And while we have determined the floor, we have yet to determine the ceiling.

You could say that the $32.50 level is the ceiling, but it’s a little early to call that quite yet. Nonetheless, as long as we can see a little bit of follow through at this point in time, then I think silver does continue to go higher. The next major resistance barrier above is the $28.50 level is a barrier that getting beyond that would be a significant sign of further upward momentum.

In that environment, we could see silver really take off, but at this point, it is more likely that we will see a lot of volatility, as traders continue to worry about the idea of the economy slowing, and industrial demand slowing. Furthermore, it is important to note that the interest rate picture will continue to be a major factor here.

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