Silver Price Forecast – Silver Markets Reach Towards Major Figure

Silver markets broke down a bit during the trading session on Monday, as we reach down towards the significant $17.00 level. That obviously a sign of negativity, but there are a couple of moving averages just below that a lot of traders will follow. The 50 day EMA is currently at the $16.82 level, with the 200 day EMA down at the $16.60 level. I do think that somewhere in that general vicinity we should see buyers and therefore it is worth paying attention to. Ultimately, this is a market that also has massive support down at the $16 level, so that is also worth paying attention to.

SILVER Video 16.06.20

Because of this, I think that it is only a matter of time before the buyers return and I look at this pullback as a potential buying opportunity. It is really not until we clear the $15 level that I am concerned about silver for the long term, and it is going to take a while to get down there. With that in mind, I like the idea of picking up little bits and pieces, but you need to be careful in this volatile time, because we can get whipped around quite drastically if we are not careful.

To the upside, I recognize that the $19 level continues offer a bit of a ceiling, so that should be paid attention to if we reach up towards that area again. All things being equal, I do like the idea of eventually breaking out above there due to central bank quantitative easing, but we obviously have some work to do.

For a look at all of today’s economic events, check out our economic calendar.