Silver Forecast: Fighting Resistance Just Above

• Silver initially tried to rally a bit during the trading session on Thursday, but then gave back some of the gains.
• That's not to say that this is suddenly a bearish market.
• Rather, this is a market that has gotten a little ahead of itself and is facing not only gravity, but previous resistance in the form of the $26 level.

Pullbacks Will Continue to be Interesting

A little bit of a pullback here makes a lot of sense and it should be a nice buying opportunity based on value. With the $24.50 level underneath being so important, I will be watching to see if we can pull back to that area to see whether or not it ends up being a buying opportunity. If we were to turn around and break above the $26 level, that would obviously be a very bullish sign and at that point in time, I think silver would really start to take off.

Central banks around the world continue to cut interest rates and that could be a catalyst for higher silver pricing. But quite frankly, most people use gold for that trade. And silver, of course, also has a bit of an industrial bit of influence in the market as well. So silver is quite often its own animal when it comes to how it trades.

You should be paying attention to not only interest rates, but the value of the US dollar, as a falling US dollar typically helps over as well. Nonetheless, we have gotten far too ahead of ourselves, so I think a pullback is healthy, even if you are bullish. I would not be a seller, at least not at this point. Ultiamtely, you should also pay close attention to the gold markets, as they do tend to front run what happens over in this market.

Make sure you are cautious about your position size, and of course whether or not you just jump straight into the markets. This market can be quite dangerous, so also keep this in mind. Silver shouldn’t be the majority of your holding, rather just part of your overall portfolio.