Silver Price Forecast – Silver markets rally significantly on ThursdaySilver markets rallied significantly during the trading session on Thursday, breaking above the $17 level and reaching towards the $17.30 level. We have pulled back a little bit since then, but it certainly looks bullish as we have broken above a large come around, psychologically significant number.
The Silver markets broke out to the upside during the trading session on Thursday, slicing through the $17 level, reaching towards the $17.30 level. I believe that the market will continue to attract buyers on pullbacks, and that the $17 level should offer a bit of support on short-term charts. I recognize that Silver is very sensitive to the US dollar and risk appetite in general, so keep that in mind. However, I think that the trajectory is a very positive, and it looks as if the 50 SMA continues offer support. Longer-term, I think that we can break above the $17.50 level, and then go looking towards the $18 level after that.
I believe that the volatility will continue to be a major issue, but that of course has always been the case for silver. I like buying pullbacks, and I think that it’s only a matter of time before we buy these dips. I think that the Silver markets will eventually go looking towards the $20 level, but I choose not to use much in the way of leverage as it is difficult to hang onto these moves. However, if you have the ability to trade the CFD market, then you can position your trade size accordingly. Unfortunately, in the United States we don’t have that option.
At this point, I think that we will eventually go to the $20 level, and then break above there to the $50 level. Obviously, it’s going to take some type of major economic event for that to happen, but it certainly looks as if we have a lot of work to do before we get to that point.