Silver Price Forecast – Silver Markets Quiet on Tuesday

Silver markets went back and forth during the trading session on Tuesday, as we sit above the $16.50 level, an area that has been crucial for some time. The 200 day EMA sitting just above causes a bit of resistance. If we can break above there, then it’s likely that the market will go to the $17.50 level which also features the 50 day EMA. At this point, the market looks as if it is going to ping around between these three levels but if the market was to break down below the $16.50 level, it could lead to further losses.

SILVER Video 11.03.20

The $16.00 level underneath is a level that people will pay attention to, and a breakdown below that level could open up the floodgates. All things being equal though I think that this market simply goes back and forth and there is a certain amount of uncertainty when you look at the overall demand as silver is a precious metal, but furthermore it is an industrial metal, meaning that if there isn’t enough industrial demand, it’s very likely that the market could roll over even though gold will probably take off at the same time.

I do believe that there will be buyers underneath, but on the whole the best way I know to play silver is from a longer-term standpoint, buying physical. However, shorting it when precious metals get crushed is a very quick way to make money in the right circumstances. All things being equal, I do believe that $16.50 will continue to be important.