Silver Price Forecast – Silver Markets Reach Top of Range

Silver markets have rallied a bit during the trading session on Thursday, reaching towards the $16.00 level. This is an area that offers significant resistance, as it has been very stable over the last several sessions. At this point, the market looks likely to not only find trouble at the $16.00 level, but also the 200 day EMA above. The 200 day EMA of course is a major technical indicator that a lot of people will pay attention to, and as a result I fully anticipate that we will pull back from here.

SILVER Video 15.05.20

Is it a short selling opportunity? Not necessarily. I think we are simply trying to build up enough momentum to break out to the upside. It should be noted that the gold markets are approaching the top of the most recent range of consolidation, although it had broken out of a symmetrical triangle. In other words, this is a market that looks highly likely to try to go higher, but it may need to pullback in order to build up the necessary momentum over there as well. As the two tend to move in the same direction, it makes sense that we will see both pullback in order to trying to find more value. The 50 day EMA in the consolidation area just below current trading makes sense as technical support as well. Ultimately, silver will lag gold due to the fact that there is a certain amount of industrial usage that needs to be paid attention to, but in the end, I believe that the “hard money” aspect will continue to play a major part.