Silver Price Forecast – Silver Continues to See Upward Momentum

Silver Markets Technical Analysis

Silver pulled back a little bit during the trading session on Monday in the early hours only to turn around and show signs of strength again near the $28.50 level. The $28.50 level is an area that a lot of people have paid close attention to recently as it is the top of a major consolidation era going back several years.

That being said, the area above the $28.50 level extends all the way to the $30 level, showing signs of exhaustion. Any short-term pullback at this point in time, I think, is a buying opportunity from what I can see. The $27.50 level is an area that I think a lot of people pay attention to, as it was a previous resistance, and I think it’s also an area of potential support.

If we break down through there, then we have the 50-day EMA that sits just above the crucial $26 level. The $26 level is an area that I think a lot of people will pay attention to due to market memory, where it used to be resistance. And as a result, I do think that that’s going to be your floor in the market in the going forward.

Buying on dips is probably going to end up being the best way to trade in this market, because silver does have a lot of overhang and it is historically manipulated and you just don’t know if that’s going to be the case again this time. Silver is also not gold, it’s not as safe of an asset, so it doesn’t necessarily move in the same way. A lot of green technology demands silver, so that is a bonus, but at the same time, it’s also sometimes, and not always, hypersensitive to the US dollar, so although I do favor the upside, I’d like to see a pullback before I bought.

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