Silver Price Forecast – Silver markets have slight move to the upside

Silver markets rallied initially during the trading session on Thursday but gave back some of the gains to form a less impressive bullish candle. I think there is a lot of noise just above, so it is going to continue to be a bit difficult to grind higher. If we break down below the bottom of the Wednesday session, then I think the market drops towards the $12 level underneath. The 50 day EMA above should offer resistance, currently sitting at roughly $14.55 and sloping lower. I think a short-term bounce may make some sense, but if we can break above the 50 day EMA, the market should then go to the top of the consolidation area that we have seen recently, meaning $15.

SILVER Video 16.11.18

However, I recently looked at a 20 year monthly chart, with a continuous front month contract. We’ve recently broken down below a major uptrend line, so I suspect we may have more pain ahead. However, I’m not willing to short this market until we reach higher and show signs of exhaustion, or we break down below the Wednesday candle. I do recognize that a short-term buying opportunity is showing itself, and I also recognize that a longer-term “buy-and-hold” mentality on physical silver makes sense as well, as a lack of leverage makes over one of the most attractive commodities in its physical form. I got no issue whatsoever in buying ounces of silver at this level, knowing that we could drop from here a bit more.