Silver Forecast: Silver Continues to Find Buyers on Dips

• During my daily analysis of the commodity markets, the silver market has caught my attention as we have rallied to reach toward the 50 Day EMA.
• The 50 Day EMA is an area that a lot of people will be paying close attention to for potential resistance, which of course is a technical indicator that a lot of people watch.
• If we can break above there, then it’s likely that the market goes looking toward the $32 level.

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At this point in time, the market has been bouncing around between the 50 Day EMA and the $30 level, as we have been consolidating in trying to sort out whether or not we can form a bit of a base. This base could allow the market to go higher, and we are in the midst of forming something that looks a whole lot like a “W pattern”, and that of course is a very bullish sign.

The $30 level of course is a large, round, psychologically significant figure, and of course we have an uptrend line that comes into the picture to offer support also. Beyond that, the 200 Day EMA sits just below the uptrend line, so that as even more credence to the “floor in the market” in that general vicinity.

Silver is Volatile

Keep in mind that the silver market is extraordinarily volatile so you have to be cautious with your position size in this market. Furthermore, you also have to keep in mind that it does move a little bit different than gold, as gold is more of a safety asset while the silver market is somewhat a safety asset, but it also is an industrial metal that a lot of people have to pay close attention to it. If we do break out to the upside, the market could eventually go to the $35 level, which was a major swing high, and of course an area that a lot of people could be aiming for if we do break out to the upside.

On a break down below the 200 Day EMA, this could send silver plunging, and I think you would see metals in general struggle, something that is very possible, but right now we are in the midst of at least trying to recover.

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