Silver Price Forecast – Silver Continues to Look Towards Massive Resistance

Silver Markets Technical Analysis

Silver has been somewhat stagnant during the early hours on Wednesday as we’re hanging around the $28 level. Between $28 and $28.50 there are a lot of sell orders, so the question is whether or not we are going to break out if we break above 2850 then that would obviously be a huge victory for silver bulls but at the same time, I think it’s getting to the point where we are so overstretched a pullback almost certainly is coming. I don’t like chasing trades and buying all the way up here is certainly a reckless thing to do with the relative strength index well above the 70 level.

A pullback would make a certain amount of sense and I do think it could offer an opportunity if you are patient enough. In fact, I’d like to see silver drop all the way back down to $26 but we’ll have to wait and see if that happens. If you are trying to play silver via the geopolitical trade, you’re going to be better off with gold to begin with because silver also is an industrial metal and there’s a certain amount of questions asked of it.

When it comes to what to do with it. After all, it is a huge part of the green technology trade, so it’s interesting to see whether or not that continues. With central banks likely to cut rates later this year that has put some upward pressure on metals in general as well as commodities overall, so that’s part of what you’re seeing here. But there does come a time where the market has just gotten too far and too short of amount of time.

If we were to break above the $28.50 level, then the next target is almost certainly going to be near the $30 level. But again, I don’t like chasing trades. That’s not how you make money. This pullback that we had seen for trading sessions ago that reached towards $26 was a great opportunity. Now I think a lot of traders are going to be out there looking for the same.

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