Silver Price Forecast – Silver Markets Stabilize

(February 5, 2020 -  Christopher Lewis)

Silver markets went back and forth during the trading session on Wednesday, as markets continue to test support just below. The $17.50 level of course attracts a lot of attention, as does the 50 day EMA just above. If the market can break above the 50 day EMA it’s likely that the market will then go looking to reach towards the $18.00 level above. If we can break above there, then it’s likely that the market will continue to go much higher, as it would be a break of a large, round, psychologically significant number and could send the market looking towards the $18.50 level. Above there, the next target of course would be the $19.00 level. With this, the market on pullbacks should be thought of as buying opportunities, as the $17.00 level is not only a large round number, but it also has the 200 day EMA attached to it.

Longer-term, I do like the idea of buying silver as central banks around the world continue to have very loose monetary policy, and therefore one would assume that precious metals will continue to attract a certain amount of attention. With that being said, I have no interest in shorting this market, at least not until we break significantly below the 200 day EMA, something that isn’t going to happen very soon. To the upside, I do anticipate that the $19.00 level will be very difficult to break above, but if the market does in fact reach above there, then the $20.00 level is very likely to be targeted next.