Silver Price Forecast – Silver Markets Testing 200 Day EMASilver markets have fallen on Monday to reach down towards the 200 day EMA. At this point in time, a lot of value hunters may be looking at this market.
Silver markets have fallen during the trading session on Monday to reach down towards the 200 day EMA. This is an area that of course will attract a certain amount of attention due to the fact that technical traders tend use it for a longer-term trend defining indicator. Nonetheless, one of the things you need to pay attention to is the fact that silver and gold are highly correlated, and gold has blown through the 200 day EMA and looks very soft. Because of this, I believe that it is likely the same thing is going to happen to silver, and I believe at this point we could very well go looking towards the $20 level. At that point, I would be very interested in buying.
SILVER Video 01.12.20
At this point in time, I believe that a lot of what is going on is simply a “risk on trade”, thereby having people dump the precious metals to put money to work in other higher-yielding areas. As long as that is the case, I believe that precious metals will continue to struggle a bit. Nonetheless, I do like the idea of buying dips for the longer term, simply because the US dollar should continue to weaken based upon what we have seen recently. Because of this, it is very likely that this will be a “buy on the dips” type of event but I believe that you have plenty of time to get involved.
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In fact, I am essentially sitting on the sidelines because even though I think we could pull back from here I have no interest in shorting because in the longer-term silver should continue to do fairly well.
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