Silver Price Forecast – Silver Continues to Show Strength

NEW YORK (Jan 4) Silver has rallied a bit during the trading session on Wednesday as we continue to see the market hover above the $24 level. By doing so, it looks as if it is threatening the shooting star from the Tuesday session, maybe opening up the move to the $25 level. I don’t necessarily think that we can just slice through the $25 level, so at this point I think it would be very likely to see short-term pullback.

I certainly would not short this market, not the way it has been behaving. Silver is a great way to lose money if you are not cautious, and you need to play it more or less from the bigger move and from a smaller position. If we do break down below the $24 level, it opens up a drop down to the $23 level, which will also see the 50-Day EMA approach that same general vicinity.

Pay attention to the US dollar, because if it does struggle, that can help silver, but it does not necessarily have to have that negative correlation. Ultimately, this market will continue to be very noisy, but short-term pullbacks are more likely than not going to be seen as potential buying opportunities, as there are a lot of people out there willing to take advantage of it. Silver also has an industrial component, but right now it looks as if it is being used for wealth preservation more than anything else, so you should pay close attention to that attitude as well. Ultimately, I think we go higher.

FXEmpire