Silver Price Forecast – Silver markets rally again on Wednesday

Silver markets rallied a bit during the trading session after initially falling on Wednesday, slicing through the 200 day EMA. In fact, we even got above the $15.25 level during the height. The market is reacting to the pre-release statement by Jerome Powell for his testimony in front of Congress. It looks as if the Federal Reserve is more than willing to cut interest rates, and if that’s going to be the case it should continue to drive precious metals higher.

SILVER Video 11.07.19

This doesn’t mean that you should jump “all in” at this point, but it certainly looks as if it will use the $15 level underneath as a massive floor. I think that the market will eventually try to go to the $15.50 level but breaking above there might take a bit of momentum building. You can see that we did give back some of the gains almost immediately, but this is a strong sign and of course we have a technical level underneath at the $15.00 level course offering reason enough to go long. The 50 day EMA, the round figure, and of course the gap all figure into the idea of buyers.

Breaking above the $15.50 level opens the door to the $16.00 level given enough time, so at this point it’s very likely that if you are a longer-term trader, you can hold on until we get there. That doesn’t mean that it’s going to be easy, and it certainly will be volatile, but that’s nothing new for silver. If we were to break down below the $14.90 level, then we could break down from that point. However, the currently doesn’t look as likely.

Please let us know what you think in the comments below