Silver Price Forecast – Silver Markets Form Hammer

Silver markets initially dropped during the trading session on Friday, but then turned around to show signs of life. By forming a hammer, it looks very likely to be supported in this area.
Christopher Lewis
Silver daily chart, December 02, 2019

Silver markets initially pulled back a bit during the trading session on Friday but found enough support to find $17 to be important. By forming the candle, the way, we did, it suggests that we are going to continue to find buyers in this area, and then perhaps bounce but we are stuck between two major moving averages, and that will cause quite a bit of noisy trading. At this point, the market looks to try to find a bit of a bounce here, but it needs to clear the 50 day EMA above to bounce towards the $18.00 level. At this point in time the 200 day EMA at the $16.57 level should offer significant support. If we were to break down below there, then the $16 level will more than likely be crucial.

SILVER Video 02.12.19

Looking at this market, it’s likely that we go back and forth in this general vicinity with $17 being a bit of a fulcrum for price, it should be thought of as “fair value.” At this point, it’s likely that the market will be very choppy and noisy, so if you are a longer-term trader you will probably like the idea of buying this, as the volatility could continue to be a major factor. To the upside, if we were to break above the $18 level, it’s likely that we could go much higher, perhaps even reaching as high as the $20 level. Looking at this market, it’s very choppy that we continue to see this market is one that is going to go back and forth. At this point, the market is very likely to be volatile and difficult. Breaking above those moving averages would be a good sign.

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