Silver Price Forecast – Silver Markets Testing 200 day EMASilver markets initially tried to rally during the trading session on Tuesday but found enough resistance to turn around and fall towards the 200 day EMA, a very important level.
Silver markets have initially tried to rally during the trading session on Tuesday but then broke down towards the 200 day EMA, an area that of course is crucial when it comes to technical analysis. Keep in mind that the 200 day EMA is quite often used by longer-term traders as a bit of a proxy for the overall trend, so it attracts a lot of algorithmic trading if nothing else.
SILVER Video 13.11.19
Pay attention to the risk appetite, because it seems as if the risk appetite is starting to get a little bit more bullish, and that works against precious metals. The Federal Reserve is on the sidelines and not cutting interest rates any further, so that also works against precious metals. That being said, there are a lot of geopolitical concerns out there and there are plenty of reasons that don’t take a lot of imagination to think about that could come in and push this market to the upside.
If silver can break above $17, then I feel that the market will probably go looking towards the $17.50 level again as it is not only the 50 day EMA but it is also the bottom of the uptrend line that had been broken through. Ultimately, this is a market that is on the precipice of making a rather big move, and a daily close below the 200 day EMA could open up a move back down to the $15.50 level, which would be extraordinarily negative. Keep in mind that the 61.8% Fibonacci level is just below the 200 day EMA though, so one would have to think that a bounce is coming at the very least.
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