Silver Price Forecast – Silver markets rally for Tuesday

Silver markets rallied a bit during the trading session on Tuesday, reaching towards the 50 day EMA at the $15.50 level. That’s an area that of course will attract a lot of attention not only because of the round figure but the moving average. Early in the day, we have pulled back a bit from that level, but I think at this point is essentially going to be “fair value” overall as it is the middle of a larger consolidation area. After all, the $15 level underneath has been massive support, while the $16 level above has been massive resistance.

SILVER Video 13.03.19

If we can break above the $15.50 level, the market is very likely to continue reaching towards the $16 handle. Alternately, if we pull back from here, we could reach as low as $15. Simply put, if we can break above the $15.50 level on at least an hourly candle stick, then I’m willing to start buying silver again. Pay attention to the US dollar overall, perhaps using the US Dollar Index, or if you don’t have access to live pricing perhaps the EUR/USD pair will serve as a nice proxy as to how strong or weak the US dollar is. If it softens in value, it’s very likely that silver will continue to go much higher.

Obviously, the exact opposite is true. If the US dollar strengthens, then we should see silver and by extension gold as well roll over and start going to lower levels. We have seen a nice move over the last couple of days, so a pullback is possible, before buyers finally take over again.

Please let us know what you think in the comments below