Silver Price Forecast – Silver Markets Break Down Toward Support

Silver markets fell during the course of the trading session on Friday to reach down towards the $25.90 level, which is where we begin to see a rather significant support underneath near the 200 day EMA. The 200 day EMA of course will attract a lot of attention, and it is worth noting that silver markets have simply stalled for quite some time and therefore it is very possible that we may go looking towards the $25 level, possibly even breaking below the uptrend line.

SILVER Video 19.07.21

If we break down below the uptrend line, the $25 level, and of course the 200 day EMA, it is very likely that silver will end up entering a bit of a bearish market, falling apart. This makes quite a bit of sense considering that the US dollar is strengthening overall, and it makes sense that the strengthening currency could very well work against it. If that is going to be the case, then I anticipate that silver could drop all the way to the $20 level, which is obviously a longer-term call and not necessarily something that would happen overnight. On the other hand, we could turn around and strengthen a bit and perhaps reenter the consolidation area.

If we can break above the $27 level, we would be above the 50 day EMA as well, and then the market is likely to go looking towards the gap above which is near the $27.75 level. Because of this, I think what we would see is a massive flush higher, but quite frankly we have had plenty of time to make that happen, and obviously we would need to see a lot of effort.

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