Silver Price Forecast – Silver Continues to Hang Onto Support Region

Silver Markets Technical Analysis

The silver market continues to hang on to the $24.50 region by its fingernails as the market has been rather choppy and somewhat negative over the last couple of days. That being said, silver is a little bit of a wild beast at times, and therefore you need to be very cautious. You don’t want to jump in with a massive amount of position sizing, mainly due to the fact that it can move so erratically. That being said, it still looks like a market that you would be buying dips in and not necessarily trying to short, although it is worth noting that traders around the world are very cognizant of the brick wall that we have up at the $26 level. Because of this, I think the upside is somewhat limited.

And while it does tend to move in the same direction in general as gold, the reality is that the market is likely to rise a bit, but I think getting above 26 is going to be very difficult. If we do break down from here, then the 50 day EMA and the $23.50 level underneath offer quite a bit of support. In general, this is a market that I think, given enough time, will continue to bounce around and probably follow gold to a point, but we are starting to diverge between the two as gold looks like it’s doing everything it can to break out. It is worth noting that commercials in the commitment of traders report over the last week or two have never been this short. So that could provide quite a bit of overhead resistance as well. If you are playing the precious metal trade, I prefer gold over silver at the moment.

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