Silver Price Forecast – Silver markets pulled back on Wednesday

Silver markets pulled back a bit during the trading session on Wednesday, as we continue to see the $16 level offer a lot of resistance. It appears that the $16 level is being defended rather heavily, and with so many different people giving testimony in front of Congress during the trading session, the US dollar got a little bit of a boost against some currencies, driving the price of silver lower.

SILVER Video 28.02.19

From a technical analysis standpoint, I believe that the $16 level is massive resistance. I also believe that the 50 day EMA underneath is massive support. It’s pictured in maroon on my chart, it has recently crossed above the 200 day EMA which is in black. Obviously, the 200 day EMA is even more important, so I think there’s a bit of a “floor” at $15.50. With that being the case, I think that we are simply looking at a market that is offering buying opportunities underneath, but I also recognize that we could have just made a bit of a “double top.”

That being the case, I think silver is going to be very difficult to trade in the short term. I am looking for value overall, but a break down below the $15.50 level shows the market rolling over a bit further. At this point, the one thing that I do take away from the chart with a bit of certainty is that silver is going to lag behind gold. Gold markets are approaching major support, and although they are also down during the trading session on Wednesday, they look much healthier. In other words, if you are looking to go long precious metals against the US dollar, it’s probably better to use gold. If the US dollar suddenly strengthens, you probably want to short this market.

Please let us know what you think in the comments below