Silver Price Forecast – Silver Continues to Look Bullish But Needs a Pullback

Silver Markets Technical Analysis

Taking a look at the silver market you can see we have pulled back just a bit during the trading session on Thursday, as we had previously broken through the crucial $26 level. The $26 level is an area that a lot of people would pay close attention to, as it has been massive resistance now that we are pulling back.

And I do think that makes a certain amount of sense, the reality is that $26 now needs to hold and support. We are a significant distance from there, so I’m not overly worried about it, but it does look like silver is ready to try to take off to the upside. But it’s also worth noting that a lot of the big commercial contracts in the futures market are betting against silver rising, so we are having a big fight.

All things being equal, this is a market that will move based on geopolitical concerns, interest rate concerns and of course, the massive amount of debt that the world is issuing, especially the United States. At this point, I think the best thing that you need to see here is a pullback and then a bounce. I wouldn’t be a buyer here.

The market has just exploded to the upside and ripped through a major resistance barrier, but it also is overextended. At this point in time, the short squeeze certainly looks like it is taking effect, but I think that a pullback needs to happen in order to find value. If we break back below the $26 level that would actually be a fairly bad sign.

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