Silver Price Forecast – Silver markets gap higher

Silver markets of course have gapped higher during the trading session on Thursday, pulled back towards the $16 level, and that bounced again. I think that silver markets will continue to show signs of support going forward, as the US dollar is softening a bit. Beyond that, I believe that there is a lot of geopolitical concerns out there and that of course could drive precious metals higher overall. The market will more than likely go reaching towards the $17 level longer-term, but obviously it will get there in one shot. I do believe that precious metals will do better for most of the year, so it makes sense that this breakout has happened.

SILVER Video 01.02.19

What I find even more intriguing is that we gapped above the top of a shooting star, which is an extraordinarily bullish sign. With the jobs number coming out on Friday, expect a lot of volatility with the greenback but a pullback should offer buying opportunities as long as we can stay above the body of the shooting star from the Wednesday session. Pay attention to gold as well, because it tends to lead the way as silver will follow and precious metals tend to move in the same direction longer-term. I like the idea of buying dips and perhaps building a larger position, because now we have crossed above the 200 day EMA with the 20 day EMA and it now looks likely that the 50 day EMA will as well.