Silver Price Forecast – Silver Markets Rollover

Silver markets initially tried to rally during the trading session on Friday but found resistance near the 50 day EMA. After all, this is a significant technical indicator that a lot of traders out there will pay attention to. It is sloping lower, and it suggests that we are in fact going to see more technical resistance there going forward. I think that the market showing signs of exhaustion makes sense, because the silver markets have a lot of industrial component built into them, which of course is something that is not necessarily going to be strong as the economy around the world has stopped.

SILVER Video 27.04.20

That being said, I am not necessarily looking to short silver, but I think a short-term pullback is highly likely. I think somewhere near the $14.50 level there should be plenty of buyers, assuming that we break down below the $15.00 level. To the other side of the equation, if we were to break above the shooting star from the Thursday candlestick, then it is likely that silver goes looking towards the $16.00 level, possibly even the 200 day EMA at the $16.44 level. All things being equal, this is a market that will continue to lag behind the gold market, and quite frankly this is why I prefer gold over silver. I do by silver occasionally, but I do it in the physical sense as I do believe that with all of the central bank intervention, it is only a matter of time before precious metals will make a huge move to the upside.