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Silver Price Forecast – Silver markets testing major support

By:
Christopher Lewis
Updated: Oct 2, 2019, 16:02 UTC

Silver markets bounced a bit during the trading session again on Wednesday, as we have tested the crucial $70.00 level. That’s an area that has been major support in the past, and we are now slicing back through the 50 day EMA which of course will attract a certain amount of attention in and of itself.

Silver daily chart, October 03, 2019

Silver markets have rallied a bit during the trading session on Wednesday, reaching above the 50 day EMA in the midst of trading during the US session. Having said that, the market does have a lot of noise just above that could continue to cause an issue, and therefore it’s likely that the market will struggle in this general vicinity. However, if we were to break above the $18.00 level it would then free the Silver markets to go much higher. I think what we are essentially going to be looking at here is a scenario where the market is trying to come across as forming a new range in the short term.

SILVER Video 03.10.19

To the downside, the 200 day EMA is currently trading at the $16.15 level, suggesting that the market is well supported in that general vicinity. At this point, break above the top of the daily candle stick for the trading session on Wednesday could send this market closer to the $18.00 level which of course is what buyers are hoping to see. Ultimately, the market will continue to be very choppy and volatile but we are still in and uptrend even with the most recent pullback. I suspect that silver is going to be prone to the “risk on/risk off” attitude of traders as per usual, and ultimately it’s likely that the market is one that you should be trading for more of a short-term standpoint with perhaps an upward bias longer term.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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