Silver Price Forecast – Silver Markets Continue To Pull Back
Silver markets did very little during the trading session to dissuade the sellers as we have been struggling to find direction. The market has recently pull back from the $15.00 level and it looks very likely that we are going to continue to see more bearish pressure than anything else. If we break down below the $14.00 level, then it’s likely that the market could go down to the $13.00 level which was the top of the consolidation area below. That should then offer plenty of support.
SILVER Video 01.04.20
A bounce from that area should be a nice buying opportunity, as it would be a “higher low.” By doing so, it could get a bit of a bottom going, and perhaps be the catalyst that silver needs in order to turn around longer term. If the market were to break above the $15.00 level, then the market could go looking towards the 50 day EMA above. After that, we could even be going towards the $17.00 level.
Keep in mind that the silver markets are a bit different, due to the fact that although they are a precious metal, silver also has a major industrial component which of course is suffering in current trends. Ultimately, this is a market that I think probably pulls back before finding buyers. I’m not necessarily interested in shorting this market, rather I am looking for value for the longer term. I like the idea of owning silver, but I would be cautious about adding too much leverage into the position. Be cautious, but I do like the idea of picking up value.
This article was originally posted on FX Empire
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