Silver Price Forecast – Silver Continues to Rally

Silver Markets Technical Analysis

Silver has broken higher again during the on the Wednesday, and of course, we continue to see a lot of volatility in this market as we have a little bit of a silver squeeze going on. I will say that it’s been rather impressive, but it is still very difficult to get aggressive in this market because it is so dangerous.

The $28.50 level underneath could offer a little bit of short term support but if we break down below there, then the market could fall down to the 50 day EMA. On the upside, we could see the market try to race towards the crucial $30 level. But $30 has historically been a real problem for the silver market. That being said, once we break above $30 ahead, you will really see a major short covering rally.

I think history has shown us that the route from $30 to $50 is much quicker than most people would expect. Either way, I think kind of a scenario where things are going to be very noisy and difficult. But I also recognize that we are extremely stretched at this point, and sooner or later we will get a correction.

And unfortunately, in the silver market, corrections tend to be very nasty. So do keep that in mind. I would be very cautious getting involved now, but if you are already involved in the silver market, then obviously you want to try to at least give it a chance to truly take off to the upside. As for myself, I’m a little bit more comfortable with gold because the fundamentals make more sense. But ultimately, they both tend to move in the same direction, although silver tends to be very erratic. So, keep that in mind.

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