Silver Price Forecast – Silver Markets Show Hesitation on Monday

Silver markets went back and forth during the trading session on Monday, showing signs of exhaustion at the $16 level. If the market breaks above there it also has to deal with the 200 day EMA, which is going to cause a lot of issues. With that in mind, I like the idea of buying dips closer to the $15 level which has shown itself to be so resilient as of late. With that in mind, I look at this as a market that is trying to build up a bit of pressure. However, one has to wonder whether or not there is a certain amount of distribution going on after a move higher.

SILVER Video 12.05.20

If the market was to break above the 200 day EMA, then it could go towards the $17 level, perhaps even the $17.50 level. Expect a lot of choppy volatility due to the fact that silver of course is highly influenced by the industrial demand part of the equation, not just the precious metals ideal. Because of this, it will continue to lag gold although I do think that it has the possibility of being a nice longer-term buying opportunity. With all of that being said, the one thing that you should definitely make sure you are doing is trading with truly little in the way of leverage, as leverage can be extraordinarily dangerous in this market, especially considering the economic environment that we find ourselves in.

The 50 day EMA sits just below offering a bit of support, and as a result there is the possibility that we do finally break out, but I would not risk too much on that thought process. For myself, being based the United States I do not have the ability to trade anything other than futures or physical, so that is what I have been doing, buying physical silver. If you have the ability to trade CFD markets, then you can open up small positions.