Silver Price Forecast – Silver markets continue to chopSilver markets went back and forth during the trading session as the ECB had an interest rate decision, signaling further quantitative easing. That of course is good for precious metals longer term, but the reaction of silver suggests that traders didn’t get enough.
Silver markets initially rose during the trading session on Thursday, reaching towards the $18.50 level before pulling back a bit. That being the case, it looks as if silver is still susceptible for sideways choppiness, and perhaps even a bit of a break down. That breakdown is not an event that I would be looking to sell though, because I do see a nice gap underneath near the $17.50 level, it of course the 50 day EMA is in that same scenario as well. Ultimately, I do believe that the buyers come back but given enough time we probably need to see some type of pullback to offer a little bit of value.
SILVER Video 13.09.19
Silver gain 15% in the month of August which is not typical. With that in mind, we should keep our “powder dry”, giving us an opportunity to pick up silver “on the cheap.” I do think that we will eventually go higher and go looking towards the $20.00 level but it’s going to take some time to get there. After all, we have just had a massively impulsive run higher, and a certain amount of profit taking would make sense. Beyond that, there is always in decision out there when it comes to these massive moves and whether or not they can be sustained. With that, I believe it’s only a matter time before buyers come back in and I am more than willing to join them on some type of supportive looking daily candle stick or an impulsive candle stick to the upside.
Please let us know what you think in the comments below