Silver Price Forecast – Silver Markets Give Up Early Gains

Silver markets initially rallied during the trading session on Wednesday but gave back the gains as we approached the 50 day EMA. By doing so, it suggests that the market is ready to continue grinding back and forth and not quite so ready to break out to the upside. The market seems to be attracted to the $15.00 level, which of course is not a huge surprise considering that the number is a large, round, psychologically significant figure, and of course will cause a certain amount of headline attention. If, however, we can break above the shooting star and perhaps even more importantly the 50 day EMA, then the market might be free to go higher.

SILVER Video 07.05.20

To the downside, the $14.80 level continues to offer significant support, so as long as we can stay above there it is likely that the buyers will return. Breaking down below that level opens up the door to the $14.50 level, and then possibly the $14.00 level. That is an area where I do expect to see a lot of buying pressure, so therefore I do not have any interest in trying to short they are either. However, if we break down below that level then it would open up the floodgates to much lower pricing. The biggest problem silver faces is that industrial demand is probably exceptionally low at this point, so it will continue to underperform the gold markets as it has over the last several months. There is nothing on this chart to suggest anything is going to change in the short term.