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Silver Price Forecast – Silver markets give back gains

By:
Christopher Lewis
Updated: Jan 23, 2019, 17:20 UTC

Silver markets initially tried to rally during the trading session on Wednesday but gave back a majority of the gains as we have seen the 20 day EMA offer resistance. Ultimately, we had formed a hammer during the Tuesday session, followed by this sickly looking candle.

Silver daily chart, January 24, 2019

Silver markets broke to the upside during the trading session on Wednesday, breaking the top of the hammer from the Tuesday session, a typical buying scenario. However, we have given back quite a bit of the gains and formed a less than impressive candlestick. Ultimately, I think that the market continues to go back and forth in this little bit of area, perhaps trying to build up a bit of confidence. After all, we had seen a lot of bullish pressure until about two weeks ago when we pulled back. We have pulled back to the 61.8% Fibonacci retracement level, at roughly $15.22 just below.

SILVER Video 24.01.19

That being said, the day on Wednesday wasn’t that great. However, until we break down below the hammer from the Tuesday session, I still believe that the uptrend is intact. If we were to break down below the hammer from Tuesday, then the market could go down to the $15 level after that. The alternate scenario of course is that we break above the $15.50 level, and then continue to go higher, perhaps reaching towards the $16 level after that. Obviously, the US dollar will be greatly influential on where we go next and silver, so keep an eye on what goes on in the Forex arena. A great proxy for this chart is the EUR/USD pair, which looks as if it is trying to find support at a potential uptrend line, essentially the same thing we are looking at here.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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