Silver Price Forecast – Silver Markets Running Into Technical ResistanceSilver markets rallied a bit during the trading session on Tuesday, reaching towards the 50 day EMA before pulling back just a bit. At this point, the market looks as if it is getting a bit exhausted.
Silver markets have rallied quite nicely after breaking out during the previous session, but as you can see the Tuesday candlestick has given back some of the gains. Because of this, I believe that the market is likely to continue to offer a bit of resistance above, and the fact that we pullback where we did make quite a bit of sense considering that the $16 level was right there as well. By giving back the gains, it suggests that we may need to pullback in order to build up enough pressure to go higher, and of course it may be the market starting to step away from the industrial demand part of the equation.
SILVER Video 08.04.20
Remember, silver is not only a precious metal, but it is also an industrial metal, meaning that it has a couple of different things pushing it around at any given moment. Ultimately, I do believe that the market is going to continue to see a lot of volatility, but if the markets continue to focus on the lower coronavirus numbers, one will think that eventually buyers will come back. I would anticipate that $15 level offer a bit of support, so don’t be surprised to see a bit of a bounce in that general vicinity. On the other hand, if we do not hold at the $15 level then I think we are going to go looking towards the $40.50 level, and then eventually the $14 level after that. The market may have gotten a bit ahead of itself, and if that’s going to be the case, pullback makes quite a bit of sense.