Silver Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Technical Analysis

The silver market has fallen pretty significantly in the early hours on Tuesday, only to turn around and show signs of life again. By doing so, the market looks as if it is going to attempt to continue going higher and perhaps try to reach the $32.35 level, but we will have to see gold, I think, recover quite a bit from the previous selling of the last 24 hours as well.

Remember, although the silver market is definitely not the same as the gold market, the reality is that over the longer term, it does tend to follow gold. So with that, I think you have to understand that the 50 day EMA underneath probably offers support right along with the $31 level. $31 of course is an area that’s been important multiple times.

And therefore, I think you have to look at this as a market that you don’t really want to start shorting yet, at least not until we break well below the $31 level. The $31 level, of course, is an area that a lot of people see as a major decision making area and I agree with that. Anything under $31, I think silver really starts to fall apart. To the upside, the $33.33 level has been resistance. If we can break that, we could go looking to the $35 level. On the whole, I like silver. I just think it’s going to be very noisy going higher, and therefore you have to be very cautious with your position size.

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