Silver Price Forecast – Silver markets chop on Tuesday

Silver markets continue to go sideways in what is rather uneventful trading for the Tuesday session. The $15.50 level underneath continues to be important support, and I think the 20 day EMA sitting just below there of course will help. With that being the case, I like the idea of buying short-term pullbacks but I’m not looking for much here. If you use a little bit of imagination, you can form a bullish flag, or maybe better yet a bullish pennant, but both mean the same thing: that we will eventually go higher.

SILVER Video 16.01.19

I believe that a move towards the $16 level is coming, if we can break above that psychologically and structurally important level, then I think the market can go much higher. The flag measures roughly $1.00, which would have the market looking at just about $17, an area that has been important in the passive certainly would make a lot of sense. Beyond that, if we pull back from here we could see support at the 50 day EMA, and of course the $15 level after that. Ultimately, I look at pullbacks as an opportunity to pick up a bit of value in this market that has recently exploded to the upside. At this point, I think that a lot of people are waiting for a bit of value to get involved, so therefore I would anticipate that the buyers of dips will continue to run this market. Beyond that, the Federal Reserve looks a bit soft now, so that should help precious metals.