Silver Price Forecast: Silver Markets Rally Into The Weekend

NEW YORK (September 3) Silver markets have rallied into the weekend, from an oversold condition. This should not be a huge surprise, markets cannot go in the same direction forever. With that being said, I anticipate we probably have a scenario where this is more of a “dead cat bounce.”

Silver Markets Technical Analysis

Silver markets have rallied into the weekend to test the $18.00 level. The market had formed a hammer during the trading session on Thursday, and perhaps some of this might be short covering heading into a 3 day weekend in the United States. Regardless, this is a market that more likely than not will continue to attract a certain amount of attention, as it is an industrial metal. I don’t like buying silver, I believe that it is probably only a matter of time before it rolls over again, perhaps opening up the possibility of yet another shorting opportunity.

If we break down below the hammer from the trading session on Thursday, that opens up a trap door to much lower pricing. I think that could happen eventually, but clearly, we are not ready to make it happen yet. Nonetheless, I do like the idea of selling signs of exhaustion above, and therefore you will have to be somewhat cautious with any rallies. I’m looking for signs of exhaustion to start shorting yet again, and believe that we will probably get it by the time we reach the middle of next week.

The $19.00 level will more likely than not end up being a resistance barrier, especially as the 50 Day EMA is starting to race toward it. The US dollar has a negative influence on this market, so if you start see the US dollar spike higher, this is of course going to work against silver as well.

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