Silver Price Forecast – Silver Continues to Find Buyers on Dips

Silver Markets Technical Analysis

The silver market has rallied pretty significantly in the early hours on Thursday, as we have recaptured the $30 level by breaking above the $30 level, it does suggest that people are becoming a little bit more confident in holding silver, but you should also keep in mind that silver is extraordinarily volatile. There are a lot of questions asked about the jobs number on Friday and what its effect will be on silver because silver is also an industrial metal. And of course, we will have a lot of noise due to what’s going on with the US dollar at that moment. Short-term pullback should continue to be plenty of buyers.

And I think the 50 day EMA near the $28.50 level is something worth paying close attention to as well. I think at this point, that is essentially your floor in the market. The $32.50 level above is a major resistance barrier and ceiling. And therefore, I think you need to think of that as the top of the market, at least in the short term.

Pay close attention to the Federal Reserve and what the expectations are because if they are expected to cut rates, perhaps due to a weak jobs number, then that could provide more upward pressure on silver. Keep your position size reasonable because silver can be really damaging to your trading account if you get it wrong because unfortunately far too many retail traders like to lever this market. It is most certainly in an uptrend and I do think at this point in time you have to favor the upside.

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