Silver Price Forecast – Silver Markets Choppy On WednesdaySilver markets went back and forth during the trading session on Wednesday, showing the continued lack of direction over the last week or so. That being said though, the market has plenty of technical levels to pay attention to.
Silver markets have gone back and forth during the trading session on Wednesday, as we are dancing around the psychologically and structurally important 50 day EMA. The 50 day EMA of course is an area that traders pay quite a bit of attention to and has been reactive more than once. It is because of this that I favor the upside in general, but I also recognize that there could be a lot of noise in the short term. A break above the $18.00 level would be a signal that we are going to go higher, perhaps reaching towards the $19.00 level.
SILVER Video 23.01.20
Looking at this chart, if we do break down below the 50 day EMA it’s likely that we will then go looking towards the 200 day EMA, closer to the $17.00 level. All things being equal, this is a market that I think will continue to find value hunters, because there are a lot of reasons out there to think that precious metals markets will continue to see noise back and forth. All things being equal, I believe that the longer-term attitude is still positive, but you can see that we are between a convergence of trendlines, so it’s likely that the markets are a bit confused right now. Keep in mind that the safety trade is still to the upside, but at the same time we also have to keep in mind that silver is an industrial metal, so if demand start picking up it’s possible that could drive it higher as well. I have no interest in shorting, at least not at this point.
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