Silver Price Forecast – Silver Continues to Hang Around 50 Day EMA

Silver markets went back and forth during the course of the trading session on Monday as we see a lot of congestion around the 50 day EMA. Perhaps even more important to the market would be the $25 level, so currently looks as if it is offering a little bit of a “floor in the market.” At this point in time, I believe that short-term traders will continue to go back in and pick up little bits and pieces along the way. A lot of this comes down to the expectations of inflation, therefore it does make quite a bit of sense that silver will continue to gain over the longer term.

Looking at this chart, if we were to break down below the $25 level, I think that the next support level is the $24 level. That is an area that has seen a lot of attraction before, so I think that value hunters will continue to look at this market through the prism of trying to find “cheap silver.” If we can break above the highs of the last couple of candlesticks, the market is going to go looking towards the $28 level. The $20 level has been significant resistance previously, and therefore if we can break above there, then the market is likely to go looking towards the $30 level. Down the road, if we can break above the $30 level, the market is likely to go looking towards the $50 level based upon historical precedents. I have no interest in shorting silver at this point.