Silver Price Forecast – Silver markets stagnant on Monday
Silver markets have gone back and forth during the day on Monday, testing both the 50 and the 200 day EMA. Because of this, and the fact that we are just above the $15.00 level, the market looks as if it is in a tightening range of consolidation. If we can break out above the 200 day EMA, which is pictured in blue, then the market probably goes looking towards the $15.50 level above. Alternately, if we were to break down below the 50 day EMA which is subsequently at the $15.00 level, then the market could start to unwind towards the $14.75 level.
SILVER Video 09.07.19
All things being equal, this is a market that is going to function via how the US dollar is behaving, so if the US dollar is falling in value due to the Federal Reserve cutting interest rates, it’s very likely that silver should get a bit of a boost. That being said, this week will see Jerome Powell testify in front of Congress, so that might be the final “nail in the coffin” as to what happens next. People are expecting the Federal Reserve to cut interest rates in July, and that could give a boost to precious metals overall, silver included.
If we can break above the $15.50 level, then the market is very likely to go towards the $16.00 level. However, a break down probably has less room to move than the upside does as silver has been so suppressed for so long. Pay attention to gold, it still needs to fill the gap underneath so silver may struggle a bit before picking up to the upside.
Please let us know what you think in the comments below