Silver Price Forecast – Silver Has a Quiet Memorial Day

NEW YORK (May 29) Silver has rallied ever so slightly during the beginning of the trading session on Monday, but as it was mainly just holiday trading, which of course is very thin. The 200-Day EMA underneath should offer plenty of support. Therefore, I think we will have to pay close attention to this market. I think short-term pullbacks are about to become buying opportunities, but if we were to turn around and take out the $23.50 level, then I think it’s very likely that silver will go looking toward the 50-Day EMA, which is just above the $24 level.

It’s also worth noting that we have bounced from the 50% Fibonacci level as well, and then it’s likely that we continue to go higher. However, if we were to turn around and break down below the 61.8% Fibonacci level underneath, then we could see silver drop down to the $21.60 level, possibly all the way down to the $20 level given enough time. Keep in mind that we bounced rather hard from that level and of course, the $20 level is an area that a lot of people will be paying close attention to as it is a large, round, psychologically significant figure, and people will react accordingly. Breaking down below there could be a very negative turn of events for silver and have it crash. That being said, it seems very unlikely that’s going to be the case anytime soon.

On the other hand, if we do break above the 50-Day EMA, then it’s probably going to target the $25 level, and anything above there would of course attract the high at roughly $26.50. With this being the case, the market will likely see a lot of noise in that area as well. In general, I think this is going to continue to be a very noisy market because we are between the 2 major moving averages and of course right around that 50% Fibonacci level. In other words, you are going to have a lot of noise in general and therefore it’s likely that you will have to sit through some volatility with any trade you put on.

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