Silver Price Forecast – Silver markets finding support

Silver markets fell initially during the trading session on Monday, reaching down towards the 20 day EMA. We have bounced since then and it looks as if we are in fact finding support at that important technical level.
Christopher Lewis
Silver daily chart, February 05, 2019

Silver markets initially fell during the trading session on Monday, reaching down towards the 20 day EMA before bouncing significantly. It now looks as if we are going to continue to see buyers come in on dips, as the Silver markets have been so bullish. The recent pullback makes sense though, because we had gotten a bit ahead of ourselves and of course the $16 level would attract a lot of attention as well.

SILVER Video 05.02.19

Looking at the longer-term picture, we have bounced from the 200 day EMA, and now have both the 20 day EMA and the 100 day EMA above that level. It looks as if we were in a very nice trend to the upside, and I think that will be the overall attitude of this market, with people looking for value. I do like the idea of silver longer-term and with the Federal Reserve looking a bit softer these days, I think we should continue to see precious metals get a bit of a boost.

Moving beyond that is the fact that we have a lot of geopolitical concerns out there that could have people looking for precious metals for a bit of a safety play. I think at this point we will continue to go towards the $17 level above, which is a major resistance barrier and technical area that people have been looking at for quite some time. At this point, I don’t have any interest in selling silver, as we have formed a huge rounded bottom to boot.

Please let us know what you think in the comments below

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