Silver Price Forecast – Silver Markets Pulled Back DrasticallyThe silver markets fell significantly during the trading session on Tuesday as the Americans came back to work. However, we are starting to see signs of life at a major technical indicator.
Silver markets fell initially during the trading session on Tuesday, drifting down towards the $17.60 level. The reason that level is important, is because the 50 day EMA currently sits at it. This pullback has been rather brutal, but at the end of the day it is still well within the tolerance of the recent trading range and we have in fact already seen a recovery of significant magnitude as well. Precious metals have been in an uptrend for some time, and it’s likely that they will continue to be even if we do fall from here.
SILVER Video 22.01.20
Precious metals are getting a bit of a boost due to the loose monetary policy around the world and of course risk avoidance at times. That being said, it’s very likely that this market will find buyers due to the fact that the 50 day EMA is right here and of course the fact that there are so many different potential political issues. Furthermore, the US dollar has lost a little bit of its luster so although it has been a bit more “risk on” during the Tuesday session, the markets have been very rocky and choppy to say the least, so precious metals should continue to find a bit of a bit on these dips. That being said, if we break down below the 50 day EMA then I think the market probably resets closer to the $17.00 level. Otherwise, I would fully anticipate that this market will recapture the $18.00 level rather quickly. Expect a lot of choppiness, and perhaps keep your position size relatively small in the short term.
Please let us know what you think in the comments below