Silver Price Forecast – Silver markets pull back

Silver markets continue to struggle a bit during the trading session on Wednesday, reaching down towards the bottom of the hammer from the Monday session. We are still very much bullish looking overall, but we still continue to struggle to go higher.
Christopher Lewis
Silver daily chart, February 07, 2019

Silver markets pulled back a bit during the trading session on Wednesday, as the 20 day EMA underneath is offering support. That’s an area that is interesting to me not only because of the somewhat reliable nature of the moving average on this contract, but also the fact that it is the bottom of the hammer from the Monday session. That being the case, I think that we will eventually rally and reach towards the $16 level. That’s an area that has caused major resistance, so this pullback in my estimation is probably an attempt to build up the necessary momentum to finally break through that level.

SILVER Video 07.02.19

If we do break down below the 50 day EMA, I believe that the $15.50 level will be massive support as well, as the 200 day EMA is sitting just below there. Beyond that, we have the 50 day EMA just underneath getting ready to cross above the 200 day EMA, which is essentially the “golden cross” that so many people pay attention to. That being the case, it’s very likely that longer-term traders are starting to throw money at this market. I recognize that it will be rather choppy and difficult, but ultimately I do believe that the buyers will continue to take over, because there are geopolitical concerns that should continue to put a bit of upward pressure on safety trade such as metal. But beyond that, we also have the Federal Reserve which looks to be a bit more dovish now, which should continue to help silver rally.

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