Silver Price Forecast – Silver Markets Show Signs Of FailureSilver markets rallied initially during the trading session but ran into enough resistance at the previous uptrend line that looks like we could drop from here.
Silver markets initially shot higher during the trading session on Tuesday, reaching towards the bottom of the uptrend line from previously, and that of course is a barrier that will be difficult to overcome. The fact that we ended up forming a shooting star of course is a negative sign and this was a move that was crushed by the idea that Donald Trump will be signing the so-called “Phase 1 deal” January 15. Announcing that in a low liquidity environment has caused major issues, and therefore it looks like a market that is very vulnerable at this point.
SILVER Video 02.01.20
Breaking below the $17.85 level could send this market looking down towards the 50 day EMA below. The market breaking above the top of the shooting star would of course be a very bullish sign and could send silver much higher. At this point in time, silver looks very vulnerable for at the very least a pullback, if not some type of breakdown. Ironically, while the US dollar could get hit due to a “risk on” move, precious metals will probably suffer the same fate if this does in fact in that being the case. With this being the case, this looks like a market that is going to make some serious decisions rather soon, which makes quite a bit of sense considering that the new year is starting, and traders will need to put money to work. Ultimately, this is a market that should make significant decisions over the next couple of days, so pay attention to how things are going, and the possibility of a trend change or continuation.
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