Silver Price Forecast – Silver Markets Show Resistance At 50 Day EMA Again

Silver markets initially tried to rally during the trading session on Monday but found the 50 day EMA to be a bit resistive yet again. As we had broken below an uptrend line recently, this of course is a bearish signal. However, the 200 day EMA which is colored in blue is going to offer support. At this point it’s very likely that the market will probably continue to go back and forth in this area, showing signs of simple back-and-forth momentum. Silver of course is highly sensitive to risk appetite; just as other precious metals are. At this point in time, we have recently seen the “Phase 1 deal” agreed to in principle but the market still looks overly impressed.

SILVER Video 17.12.19

With the market breaks down below the 200 day EMA, which is currently at the $16.60 level, then we will target the $16.41 level underneath that has caused quite a bit of interest due to the fact that the 61.8% Fibonacci retracement level sits there. Breaking below that kills the entire uptrend. In the meantime, it looks like we simply go back and forth as traders are trying to figure out whether or not it’s a “risk on environment”, or perhaps a “risk off environment.” That being the case, it’s very likely that silver simply grind back and forth in this general vicinity, without having a whole lot to do until we get a bit more clarity as far as risk appetite around the world is concerned. Simply waiting for some type of impulsive and long candle could give you an opportunity to trade a bigger position. Until then, it’s probably short-term scalping.

Please let us know what you think in the comments below