Silver Price Forecast – Silver markets test 200 day EMA

Silver markets fell somewhat significantly during the trading session on Wednesday but found the 200 day EMA to offer enough support and throw this market back to the upside. The question now is whether or not precious metals can continue higher from here, or if we need some type of pullback in order to take advantage of value. We have gone a bit too far too soon, but there are two ways that this can play out: we could either pull back towards the $15 level to fill the gap underneath, or we can simply kill time by going sideways. Either way, I have no interest in shorting this market and recognize that we have been entered a new phase.

SILVER Video 27.06.19

As long as the Federal Reserve is on the sidelines it’s very likely that precious metals will continue to go higher. Further compounding that is the fact that they are even signaling there could be a couple of rate cuts down the road, and that is of course negative for precious metals overall. Overall, the market should continue to try to grind towards the $16.00 level above. Look for value, and pullbacks certainly should offer that. If you have the ability to trade CFD markets, you can add slowly. However, if you are a futures trader you probably need to find some type of value underneath as it can get expensive at $25/tick. One thing is for sure though, we have definitely changed attitudes in this market and now that we are above the 200 day EMA it’s obvious that a lot of longer-term players agree.

Please let us know what you think in the comments below