Silver Price Forecast – Silver Continues to See Upward Pressure Mount

Silver Markets Technical Analysis

Silver rallied a bit during the early hours on Monday as it looks like we are ready to continue the overall uptrend. The biggest problem Silver has is that there is a major ceiling above near the $26 level. The $26 level of course is an area that is a large round number but over the last couple of years has been a bit of a battlefield. When I look at the commitment of traders report coming out of the futures market, it’s probably worth noting that the commercials, which typically are referred to as smart money, are extraordinarily short of this market. That doesn’t mean that it has to fall, but typically it’s not a good sign.

Whether or not the market is suddenly going to roll over is a completely different question, but it may continue to be a bit of an issue for the market in terms of whether or not it can break out. If we were to break above the $26 level, then it allows Silver to go looking to the $26.50 level next. Underneath, I see quite a bit of support near the $24.50 level, which is where we pulled back to find support previously.

The 50 day EMA is sitting underneath there as well, so that might be something worth paying attention to as well. Either way, I think silver continues to see a lot of interest, and I do think that eventually we have a situation where you do want to buy on the dip, but for short term trades only.

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