Silver Price Forecast – Silver Continues to See Buyers

Silver Markets Technical Analysis

Silver initially pulled back on Monday only to turn around and show signs of strength again. That being said, the market looks as if it is trying to get to the top of the overall consolidation area that we have been in, meaning that we could get to the $26 level above. The $26 level above is a major resistance barrier that a lot of people are paying close attention to and therefore, I think you need to recognize that it might be difficult to break out above. If we do break out above there, then we really could take off. Short-term pullbacks continue to offer buying opportunities, especially near the $24.50 level. If we bring down below there, the $23.50 level underneath is massive support as well.

Regardless, keep in mind that silver is extraordinarily volatile under the best of circumstances, so I do think that it continues to be noisy. In general, this is a situation where we will see a lot of chop, and we are getting a bit long in the tooth when it comes to the overall uptrend. But right now, you clearly cannot be a seller of silver.

Central banks around the world continue to cut rates. They also continue to buy gold, which has a little bit of a knock on effect. And then of course, there are a lot of geopolitical concerns out there that people may be using silver to protect a little bit of their wealth with. We will have to wait and see but right now, this remains a buy on the dip scenario. This is a market that you do have to be very cautious with due to your position sizing but beyond that, it’s obviously very bullish.

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