Silver Price Forecast – Silver Markets Shoot Higher

Silver has had a very strong trading session during Thursday, breaking towards the $18.00 level. At this point, it looks as if the uptrend is trying to continue to the upside.
Christopher Lewis
Silver Price Forecast - Silver Markets Shoot Higher

Silver markets gapped higher to kick off the trading session on Thursday, and then continue to go much higher without much of a pullback. This shows a shock to the market, and we have sliced through the 50 day EMA. At this point, the $18.00 level looks to be very resistive, and an area that will attract a lot of attention. Nonetheless, this is a market that looks as if it is trying to save itself, and I think it’s only a matter of time before the market goes looking towards the $19.00 level above where the previous uptrend line that has caused resistance recently could be tested again. Furthermore, the candlestick during the trading session on Thursday looks rather healthy, so it should have a bit of follow-through. We have formed a perfect “rebar reversal” based upon the Tuesday, Wednesday, and Thursday sessions. With that, it looks like the overall uptrend will continue to go higher.

SILVER Video 31.01.20

The 200 day EMA underneath is sitting just below the $17.00 level, which in my estimation is the absolute “floor” in the market right now. I do think that we continue to go higher, but you will probably be better served to look at shorter-term charts for small pullbacks that then offer buying opportunities from a bounce or a stabilizing of a short-term pullback.

I have no interest in shorting silver, at least not until we break down below the 200 day EMA which is almost $1.00 below. If we did break down below there, then it’s very likely that the silver market will go looking towards the $16.00 level, but that would be a major turnaround in the attitude of markets, so obviously it would have to come due to some type of headline shock or news.

Please let us know what you think in the comments below

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