Silver Price Forecast – Silver Markets Continue Grind

Silver markets rallied a bit during the trading session but found the going tough above the $24 level. At this point, I think we are going to continue the grind lower, perhaps looking for a better and bigger base from which to rally. That being the case, I like the idea of buying closer to the $22 level, and most certainly closer to the 200 day EMA which is near the $20.64 level. After that, I believe that the $20 level will be a major support level for this market, thereby allowing the longer-term value hunters to get in the market at the same price the breakout occurred.

SILVER Video 02.10.20

This is a simple retest, something that we see time and time again, so therefore it is likely that we will see that area attract a lot of attention. Quite frankly, if we were to break below the $20 level, we could put serious downward pressure on the overall health of the silver market. Pay attention to the US Dollar Index, because if it starts to significantly rise that of course will put downward pressure on the silver markets as well. Ultimately, I do not like the idea of trying to short this market, simply because silver is very volatile and longer-term momentum is definitely going to pick up, as central banks around the world flood the markets with cheap currency.

With that, I think that longer-term silver is very likely to go looking towards the $30 level again, but that does not necessarily mean that we need to do it right now. Simply picking your battle at lower levels will probably be the best way forward.

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