Silver Price Forecast – Silver markets pulled back to close the week

Silver markets pulled back a bit during the trading session on Friday, reaching down towards the 50% Fibonacci retracement level before bouncing. By doing so, and respecting the 20 day EMA, it looks as if we are going to see buyers jump into this market and pick up a bit of value. At this point, it’s likely that we will continue to see a bit of back and forth, but obviously the Silver markets will continue to be driven by what’s going on in the US dollar. With the US dollar softening as of late due to the Federal Reserve slowing down, it’s likely that precious metals will continue to attract some attention.

SILVER Video 21.01.19

The market could pull back a little bit further, but I think the 61.8% Fibonacci retracement level would also offer a significant amount of support. Ultimately, I think that the market has simply pulled back to offer a bit of value, so keep that in mind. The $15 level underneath is a massive “floor” in the market, but I don’t think we get down to that level. The $16 level above is massive resistance, if we can break above there, the market should be free to go to the $17 level. With that being the case, I am bullish but I also recognize that silver tends to move rather radically and therefore using small positions will probably be the best thing you can do. Ultimately, I do think that we will go higher and therefore I am willing to be patient.