Silver Price Forecast – Silver markets pulled back

Silver markets pulled back a bit during the trading session on Thursday, as we tested the $15.50 level. Ultimately, I think that this market will continue to see buyers underneath as the US dollar looks a bit soft, although it was slightly positive for most of Thursday. The $16 level above should continue to be resistance, and I think that we are simply trying to build up the necessary momentum to break above that level. Once we do, I think that the market is free to go much higher.

SILVER Video 18.01.19

The 20 day EMA has acted quite admirably when it comes to support and resistance lately, and of course we have recently broken above a major consolidation area, which of course is a very good sign. With that being the case, I believe that the $15 level underneath is the “floor” in the market, and I think it will be difficult to break down below there. I also believe that it is going to take some effort to break above the $16 level finally, but once we do we will probably continue to go towards the $17 level above. That is an area that is massive resistance based upon longer-term charts, and therefore I think you should pay attention to that level.

I believe in the short term, slight pullbacks will continue to be the best way to get involved in this market, picking up little bits and pieces as we go along. I would keep my position size somewhat small though, as it is very volatile.