Silver Price Forecast – Silver markets run into resistance

Silver markets rallied significantly during the trading session on Wednesday but found the $16 level to cause a bit of resistance. I think at this point the market looks likely to react positively to a shrinking US dollar. It does seem as if silver is lagging gold a bit, as it has already broken out. Because of this, I think that if you are going to trade precious metals, the “catch-up trade” might be in order when it comes to Silver. After all, gold and silver do tend to move in the same direction, so it would make sense that traders would be looking to take advantage of this bit of an efficiency.

SILVER Video 31.01.19

Pullbacks make sense, but I think the 20 day EMA underneath will continue to offer support, and that the $15 level underneath that is even more supportive. Ultimately, I think that the market will break out to the upside, but the question is whether or not we can do it quickly or not. I do think that once we break the $16 level significantly, we could have this market go looking towards the $17 level, which is the top of a larger consolidation area for the longer-term charts. I believe that the US dollar will continue to be worked against due to the Federal Reserve softening, and that of course is almost always good for precious metals. The alternate scenario is that the Federal Reserve is tighter than people expect, and if that’s going to be the case silver will course pay the price.