Silver Weekly Price Forecast – Silver Markets Have Tough Week

Silver markets have fallen during the course of the week to reach down towards the $23 level but have found a bit of buying pressure in this general area. By doing so, the Thursday and the Friday candlestick both look a bit supportive, and it looks like we are probably trying to enter some type of range. What is worth noting is that on the longer-term chart, we are sitting at the 38.2% Fibonacci retracement level, which if it ends up holding, that typically means that we get quite a bit of movement in the form of continuation of the original move.

SILVER Video 02.11.20

Even if we break down below there, it is worth noting that the 50 week EMA and the 200 day EMA on the daily timeframe are at roughly $20.60. With that in mind, I think that a move down towards the 50% Fibonacci retracement level is still a buyable event, as this is a market that has had an explosive move as of late, and central banks around the world will continue to print fiat currency like it is their job.

Inflation may or may not be coming anytime soon, but as fiat currency does devalue, it makes the probability of inflation increase. That typically will drive precious metals higher, which is one of the most common trades out there. Having said that, gold is typically the preferred method of trading this, but silver does move right along with that as well. What is worth noting though is that the silver market is an industrial market as well, so if we get stimulus that could be yet another reason for silver to rally. At this point, I anticipate that the $22 level and then the $20.50 level are your next two major support levels. Although we did recover a bit late in the week, the candlestick on the weekly chart is still not confidence building.

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