Silver Price Forecast – Silver Continues to Find Buyers

Silver Markets Technical Analysis

You can see Silver rallied a bit during the session here on Wednesday as it looks like we are going to continue to try to do everything we can to rally at this point in time, so it will be interesting to see how this plays out.

We do have a lot of resistance just above the $24.50 level, and I think it has to be respected, but if we can take it out and go higher, then it’s possible that we could go to the $26 level. Underneath we have the $23.50 level, which was a previous resistance barrier and now should be support. We have had the so-called Golden Cross, so that is something worth paying attention to because it clearly has an influence on how the market behaves.

With that, I think you have to look at this through the prism of a market that you’re buying on dips. And if we can break out to the upside and clear the highs of the last couple of days, we really could start to take off towards the $26 level. In that environment, we probably see the US dollar get hammered against most things.

Gold probably rallies as well. Remember, silver is highly industrial, so therefore you have to look at it through whether or not there is a lot of industrial demand at this point. It looks like central banks around the world will start cutting rates soon and that puts upward pressure on precious metals as well. And of course, we’ve seen a lot of really strong momentum in this market over the last couple of weeks.

And this could just simply be more follow through. I have no interest in shorting silver, at least not until we get below $23.50. And even then, I’d have to see how the fundamentals lay out before putting serious money to work, and therefore I think you do have to be somewhat cautious.

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