Silver Price Forecast – Silver Continues to Consolidate Above Support

Silver Markets Technical Analysis

Silver has bounced around on top of the $24.50 level, an area that a lot of people will be paying close attention to. This is an area that previously had been resistant and now is support in what is known as market memory. Keep in mind that silver is highly influenced by external factors such as the US dollar, interest rates, geopolitical concerns, and of course, industrial demand. Most of those are pointing towards higher pricing, but at this point in time, you should also be aware of the fact that commercials in the futures markets are massively short, silver, and this typically is where the smart money ends up being, and therefore, we may continue to see a lot of overhead pressure.

The $26 level has been like a brick wall for several years, and at this point in time, it’s very possible it will continue to be difficult to overcome. If we can break above the $26 level, it’s likely that the market will continue to go much higher. However, I don’t know if we have that type of momentum. If we break down below the $24.50 level, then the 50-day EMA will come into the picture for support followed by the $23.50 level. I think in general, what we’re looking at here is a market where traders are just simply going to consolidate in a relatively tight range for a moment. I am more bullish than bearish, but I also recognize the upside is probably somewhat limited based upon commercial structuring and positioning.

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