Silver Price Forecast – Silver markets sideways on FridaySilver markets gapped a bit higher during the trading session on Friday, going back and forth and show signs of volatility and stalling a bit. Overall, when I look at this chart, I see plenty of opportunity if you are patient enough.
Silver markets have gapped higher during the trading session on Friday, and then went back and forth in a relatively wild range. I think at this point we are looking at major resistance above at the $16 level, so it makes sense that on Friday traders would be a bit skittish about putting a lot of money into the market. However, it’s obvious that we have support just below at the 20 day EMA, pictured in green on the chart.
SILVER Video 11.02.19
Looking at this chart, I think pullbacks should be thought of as value, but if we were to break down below the 200 day EMA, the black moving average, then I think we may find quite a bit of trouble. This would more than likely coincide with a strengthening US dollar. All things being equal, pay attention to the EUR/USD pair, or the US Dollar Index to give you an idea of how the greenback works when it comes to the silver market. As the greenback falls, that should help silver overall as a softening Federal Reserve should continue to propel precious metals in general. That being said, there is a lot of noise and resistance just above, so a pullback makes quite a bit of sense. With this, I’m looking for value on these pullbacks and signs of support.
At this point, I like the idea of buying these dips and building up a position slowly if you are not already fully into the position. At this point, it looks as if the buyers are trying to take over, but you have a clear exit if the black EMA gets cross.
Please let us know what you think in the comments below