Silver Price Forecast – Silver markets struggle at 50 EMASilver markets continue to respect the 50 EMA, as it looks like we are starting to run out of momentum. Because of this, I believe that the $15 level will continue to be a major resistance barrier.
Silver markets have calm down a bit after rallying significantly from the $14 level, and it now looks as if we are probably going to see a bit of sideways action in the short term as the EMA is flattening. If we can break above the $15 level, then the market could go to the $15.50 level, but I think it’s going to take a bit of US dollar weakness, something that we don’t see a lot of these days, especially considering that the EUR/USD pair continues to make fresh, new lows. Ultimately, this is a market that is consolidating between the $14 level on the bottom and the $15 level on the top. If that’s the case, then $14.50 ends up being “fair value.”
At this point, I think you are essentially going to be trading between those three areas, so “choke up on the bat” so to speak, meaning that you need to trade shorter time frames. I would anticipate support at the $14.50 level, at least for a short-term bounce. However, if we break down below that level then we probably go looking towards the $14 level again which should be massive support. Longer-term, I still like this market but I recognize that there are far too many moving pieces out there to be comfortable holding something as volatile as silver with high leverage. I like buying physical silver, something that I’ve been doing for months. If we were to break down below the $14 level, there’s an even more supportive level at the $12 from a longer-term historical perspective.