Silver Price Forecast – Silver Markets Continue To Look Soft

Silver markets initially tried to rally during the trading session on Wednesday but have given back any hints of gains as the markets worry about the industrial demand collapsing for silver. That being the case, it’s very possible that we will go looking towards the $16.50 level, an area that has been supportive more than once. I believe ultimately though we will break below there if this keeps up, perhaps reaching down to the $16.00 level which of course is a large, round, psychologically significant figure.

SILVER Video 12.03.20

Rallies at this point will be suspicious until we can get above the 200 day EMA, on at least a daily close. On the other hand, if the market breaks above the 50 day EMA at the $17.58 level, the market is likely to go much higher. I don’t see that happening though, because the markets are clearly struggling with the idea of industry picking up. I believe that a break down below the $16.50 is probably coming, but it isn’t necessarily going to be the easiest thing to accomplish. There has been a significant amount of interest in that area but as the world knows, J.P. Morgan is short “paper silver”, and tends to jump in and sell silver whenever it can to give it a bit of a “push.” All things being equal, this is a market that you probably sell the rallies more than anything else as silver can’t seem to pick up its feet. Until the demand picks up, it’s going to be difficult for silver to rally.