Silver Price Forecast – Silver Looking To Test TrendlineSilver markets fell during the trading session on Wednesday, as we continue to see bits and pieces of weakness. Having said that, the market looks as if it is getting close to a major trendline, which of course will attract a lot of attention.
Silver markets fell a bit during the trading session on Wednesday, showing signs of weakness again. Ultimately, the market looks very likely to continue drifting a little bit lower to reach towards the significant uptrend line just below. It should also be noted that the market is currently trading between the 50 day EMA and the 200 day EMA, which of course still defines itself as an uptrend even though we have broken down below the 50 day EMA.
SILVER Video 13.02.20
All things being equal, I would anticipate some type of bounce near the uptrend line and I do believe that silver will eventually continue to go higher. Central banks around the world continue to loosen monetary policy and that is good for precious metals in general but we are starting to see a little bit more of a “risk on” attitude around the market so that does suggest that perhaps precious metals will face a little bit of pressure, but the longer-term trend is still positive, and for a whole host of other reasons than the coronavirus situations. To the downside, if we were to break down below the 200 day EMA, then it’s likely that the market could reach towards the $16.50 level. All things being equal though, I do think it’s only a matter of time before value hunters come back into silver as it has been such a strong performer over the last couple of years. At this point, I don’t have any interest in shorting but will let you know if that changes.
Please let us know what you think in the comments below