Silver Price Forecast – 50 EMA continues to show resistance

Silver markets have fallen from the 50 day EMA on Friday, showing signs of weakness yet again. The $14 level underneath is a significant support level that the market continues to pay attention to. If we can break down below the lows, then we could go lower and towards the longer-term support at the $12 level. This is a market that I think as soon as the fear picks up again, silver sells off. We are currently in the middle of consolidation though, and that should be paid attention to.

SILVER Video 26.11.18

The situation right now is that the $14 level underneath offers massive support, but at the same time the $15 level above offers massive resistance. This is a market that should continue to adhere to, but I think given enough time we will break down. The market continues to look very soft, and as you can see the 50 day EMA has been dynamically important.

However, if we were to break above the $15 level, then I think the $16 level would be the next target. Beyond that, the $17 level would be the next target. That would have to coincide with US dollar weakness though, and other words more of a “risk on” attitude would have to overtake the markets. Quite frankly, right now I don’t see that happening so it’s very likely that rallies will continue to be faded, and you should trade very much the same way. I would keep a smaller position though, simply because of the massive volatility.