Silver Weekly Price Forecast – Silver Continues to See Noise

Silver Markets Weekly Technical Analysis

Silver has rallied a bit during the course of the trading week, but also has given back some of the gains as we continue to see a lot of questions asked about pretty much everything. So, at this point, I expect a lot of noise coming out of Silver. It’s obvious that there is an absolute ton of resistance above, and pretty much anything that was risk asset related got absolutely decimated in the US session as Wall Street has finally learned that the economy isn’t as strong as they keep trying to tell us. Weird, those of us that live in the real world have known this for a while, but it seems like Wall Street’s just now sorting it out. So with that, we’ve seen the Wall Street traders come in and just sell everything. It’s not really a thought process at this point. It’s more or less panic.

So ultimately, I think silver is going to struggle between $32.50 and $30. This is a market that quite often will be volatile under the best of circumstances, so I’d be very cautious anyway. I like the idea of buying dips, but you need to do so with a very small position. You just can’t get overly aggressive here. There’s just too much out there going on at the same time.

The $28.50 level would also be an area of value that people will pay attention to, so keep that in mind. I think you also have to look at this through the prism of whether or not we are actually seeing a sea change. I don’t think we are. I think this is all algo trading, probably options at the end of the month, all kinds of nonsense going on at the same time.

It has nothing to do with demand for silver, nor does it have anything to do with anything other than perceived interest rates possibly. So, with this, I’m a buyer of dips, I’m waiting for an opportunity, I don’t think we have it quite yet, $30 is obviously an area of interest.

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