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Silver Price Forecast – Silver Pulls Back From Highs
As investors attempt to take profits, the silver market has slightly declined from its highs on Thursday.
Market Technical Analysis for Silver
The price of silver has slightly declined during Thursday's trading session as it seems that the resistance level above $24 will remain challenging to breach. The market may not have abruptly turned negative as a result, though; it's simply possible that we got ahead of ourselves in the near term. With that movement, it seems that we may be attempting to define a new trading range, with the $23 level serving as potentially a little bottom. It's feasible that we could descend below the $22 level, where it gapped, if we break down below there.
It is important to note that the 50-Day EMA is also close to the $22 level, which may be sufficient evidence that it acts as a little floor. I'm not really worried that we will make that move at this moment, but any move below there opens up substantial selling. After all, silver seems to be in great shape, so it seems natural that we would ultimately go to the $25 level. Remember that the Christmas season will result in very illiquid market circumstances, so it is not unexpected that some profit-taking is occurring. After all, why would you want to risk a lot of money at this time?
Longer term, it seems that silver will continue to get a little premium, but I also think that volatility will likely increase going forward. After all, a lot of "hot money" will be pursuing this market, so ultimately anticipate major swings.
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