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Silver Price Forecast – Silver Markets Break Down Drastically

By:
Christopher Lewis
Published: Feb 28, 2020, 18:00 UTC

Silver markets broke down rather drastically during the trading session on Friday to slice through not only the 50 day EMA but also the 200 day EMA.

Silver

Silver markets broke down significantly during the trading session on Friday, breaking through the 200 day EMA which of course is a very negative sign. Silver is going to be a bit interesting considering that the market participants are likely to go looking at the $16.50 level. That’s an area that I think continues to attract a lot of attention as it was previous support but quite frankly it’s probably only a matter of time before we break down a bit. Precious metals of course are a bit of a safe haven when it comes to markets, but silver has an industrial component as well, and that of course is part of what’s getting punished.

SILVER Video 02.03.20

Furthermore, the markets may have witnessed a bit of forced liquidation of silver as a lot of traders would have been in profit. By taking profits here they can pay for losses elsewhere. That’s simply the market looking for liquidity where it can find it. At this point, silver is more than likely going to find a bottom, but I think we may have a little bit more pain to go. Over the weekend we may get some central bank interest-rate cuts, so that could help silver, but there are far too many question marks out there right now to simply put money to work. This is a very dangerous market and essentially a “50-50 proposition” that we are dealing with. At that point, it’s no longer trading but it then becomes gambling. That of course is not very advisable. Expect extreme volatility on Monday regardless of what happens over the weekend.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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