Silver Price Forecast – Silver Markets Continue to Press Upside

Silver markets have rallied a bit during the course of the trading session on Wednesday as it looks like we are ready to continue to try to break out to the upside. However, the $26.50 level offers resistance, so it is not until we break above there that I would be a bit more impressed by the move. The 50 day EMA underneath continues offer plenty of support, as we have bounced from there couple of different days. At this point time, it certainly looks as if we could break out, and if we do than I think it opens up a move to the $28 level. All things been equal, breaking above there could open up the move to the $30 level.

To the downside, there is plenty of support not only at the 50 day EMA, but the possibility of more support down at the $25 level. The market breaking down below there could then have the 200 day being threatened, which I think would be a massive support indicator. Underneath there, then the market could go down to the $22 level, which of course is the bottom of the overall uptrend from what I see. If we break down below the $22 level, then it is likely that we would continue to see massive selling. On the other hand, I think that it is more likely than not that we go back and forth and try to figure out where the most momentum comes into play. Pay close attention to the US dollar, because it can have a negative correlation to this market.