Silver Price Forecast – Silver Continues to Look Bullish at Extreme Highs

Silver Markets Technical Analysis

Silver has been slightly positive in the early hours of Thursday as PPI numbers came out a little lighter than anticipated in the United States. With that being said, it doesn’t really matter, what we are looking at more than anything else is this massive barrier near the $28.50 level in the market, so we’ll have to wait and see how this plays out.

Certainly, it looks like a market that could use a bit of a pullback. I wouldn’t advocate shorting here, regardless of the setup, just simply because of the momentum. Underneath we have the $26 level, which of course, is an area that previously had been massive resistance for several years. Now, we have to focus on the $28.50 level, as it is even more important from a longer term standpoint.

In general, this is a market that looks very much like a buy on the dips, but we have to ask questions about whether or not we can keep up this momentum. I doubt it. I think what we need is some simple consolidation in this area for everybody to get used to these higher prices. The relative strength index is above the 70 level, which of course suggests overbought as well. But again, in a market that is running away with momentum.

Sometimes traders just flat out ignore the RSI. So, with that being said, pay close attention to the $28.50 level because if we break above there, this market could really start to take off. Regardless, I’m not a seller of this market for anything more than to collect profit from time to time. I haven’t the stomach for shorting such a massively bullish market.

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