Silver Weekly Price Forecast – Silver Markets Rep Higher

Silver Markets Technical Analysis

Silver initially fell during the week but found strength as the week wore on. Quite frankly, at this point we are all over the place and even though the candlestick is very strong, it’s a lot like gold in the sense that we are at the top of the established range, and now people will have to decide whether or not there is enough momentum to keep going, or if we simply drift lower. I think it’s a bit early to tell, but at this point one would have to think that exhaustion is a real possibility as we have seen so much in the way of energy expended to the upside.

It’s also worth noting that the 50-Week EMA and the 200-Week EMA just crossed, and are sitting just $0.75 above. That could cause a little bit of technical resistance as well. That being said, you want to pay close attention to the US dollar and interest rates, because they have such a strong negative correlation to silver that it’s almost impossible to ignore that.

Longer term, silver will have to pay attention to the idea of a global slowdown or industrial demand shrinking, which I think continues to wear on silver. If I were to buy a precious metal right now, it would probably be gold, because unfortunately silver has too much of an industrial component to ignore. With that being the case, I think you got a potential selloff just waiting to happen, but if we break above those moving averages, it’s likely that silver rockets higher. This is a market is going to probably be extraordinarily volatile going forward.

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