Silver Price Forecast – Silver Markets Bounce On Friday

Silver markets broke higher during the trading session on Friday, as the jobs number in the United States may have missed just a bit. At this point, the market looks as if it is ready to bounce a bit, but I would not expect a major breakout. The previous uptrend line should offer resistance, so the upside is probably limited for the short term. Underneath, the 50 day EMA is starting to turn to the upside, and therefore it’s probably only a matter of time before we get a bit of a bounce.

SILVER Video 13.01.20

The shooting star from the Wednesday session was very negative indeed, so I think at this point what we are probably going to see is more or less a back-and-forth choppy type of situation. At this point, expect a lot of back and forth trading, and therefore a lot of choppy trading between the $17.75 level on the bottom, and the $18.50 level. In fact, short-term traders will probably continue to push this market back and forth. That being said, this is a market that will be very erratic and based upon headlines, which is usual but lately we’ve seen so much in the way of volatility that you will need to be cautious about your position sizing. If in fact you do find yourself in this market, be quick to take profits until we can break out of the range. You should also keep in mind that Monday will be the beginning of normal liquidity, as traders will be coming back from the holiday. If that’s the case, we could see a significant move that the market will follow going forward.

Please let us know what you think in the comments below