Silver Price Forecast – Silver Takes Off in Early Thursday Session

Silver Markets Technical Analysis

The silver market was very bullish during the early hours on Thursday, and quite frankly, it was at an area where it needed to save itself. The $26.50 level, of course, is an area that’s been important multiple times. So, it does make a certain amount of sense that we would continue to see that level be defended. Underneath that, we have the 61.8% Fibonacci retracement level closer to the $26 level, which I think sets up a huge band of support.

Ultimately, this is a market that given enough time will probably continue to be the scenario where traders are coming in to try to defend this area. But also, you have to keep in mind that silver is a highly volatile asset and is one of the first places people run from when there’s a big risk off move. So please be careful with your position size as it could get you into serious trouble.

That being said, a move above the $27.50 level could open up a move to the $28.50 level where the 50-day EMA is rapidly approaching. This is a market that has been noisy for some time and has sold off quite viciously over the last several weeks, so now we have to determine whether or not there’s any hope of holding this trend up. All things considered, this is a market that has to be very cautious, as silver can move rapidly, and of course there is a lot of leverage involved.

For a look at all of today’s economic events, check out our economic calendar.