Silver Price Forecast – Silver Turns it Around Early During The Session on Friday

Silver Markets Technical Analysis

The silver market plunged initially during the trading session on Friday, but then turned around to show signs of life right at the crucial $24.50 level. We ended up forming a bit of a hammer early in the day, and this does suggest that buyers are starting to jump back in.

For what it is worth, gold also looks as if it is trying to rally for the session, and that of course is a good sign as well. Silver is a very volatile market, and therefore you will have to be very cautious with your position sizing, but this certainly looks like an area where a lot of people would be interested. The $26 level above would be your target given enough time, but beware, that is an area that has been massive resistance multiple times over the last several years.

If we were to turn around and break down below the $24.25 level, then it opens up a move down to the 50 day EMA, which is right around the crucial $23.50 level. While I don’t necessarily expect to see that, I do recognize it is a possibility. Pay attention to interest rates because if they continue to drop, that will help silver. If the US dollar drops, that also helps silver.

Gold sometimes has a little bit of an external influence as well, but quite frankly, it just comes down to whether or not the markets are moving based on precious metals, or if they’re moving based on some type of fear. Silver does tend to lag gold as far as its fundamental turnaround, but it is a market that can be quite profitable if you time it just right.

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