Silver Forecast: Markets Pull Back from Recent Highs

• The silver market has rallied a bit during the trading session on Wednesday, as we continue to struggle with the idea of being above the $24 level.
• The spot silver market has been extraordinarily volatile and choppy for a while, by almost all standards.
• The market is probably going to continue to see a lot of demand underneath, so if we do get some type of significant selloff, I am more than willing to come in and pick up value.

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The 50-Day EMA sits near the $22.50 level, and I think it comes into the picture for a nice buying opportunity, assuming that we even get down to that level. The silver market also has to worry about industrial demand, which of course is what makes it quite a bit different than the gold market, which is more or less about wealth preservation. Yes, silver is being used for wealth for preservation at the moment, but if we get a lot of tightening economically, it’s possible that we could see the silver market underperform.

Uptrend Waiting to Happen

It is likely that we could go looking to the $25 level. The $25 level is a large, round, psychologically significant figure, and an area that will attract a lot of attention. Because of this, you need to pay close attention to what happens in that area, because we can break above there, then silver could really take off.

I have no interest in shortening this market until we get down below the 50-Day EMA, maybe even the 200-Day EMA. The market will continue to be very noisy, but ultimately, I do think that the uptrend continues to be what people look at this market through. If we do get a sudden rush to safety, it might be bad for the silver market, and we must certainly have a lot of potentially negative headlines out there to cross the wires at any moment. In other words, the volatility is going to get worse, not better anytime soon. It’s also worth noting that we topped out over the last couple of days at roughly the same price, so if we take at the top of these candlesticks that almost certainly puts $25 firmly in the sights of the market.

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