Silver Price Forecast – Silver Markets Explode To The Upside

Christopher Lewis
·2-min read

Silver markets have shown extreme strength during the trading session on Tuesday, breaking above the $18.00 level, which of course has a significant amount of psychological importance to it. Ultimately, short-term pullback should continue to find plenty of buyers, perhaps down to the uptrend line underneath, so quite frankly there’s no reason to start selling the silver market anytime soon. The uptrend line should continue to show signs of bullish pressure. Ultimately, the market should then go looking towards the $19.00 level above which was the most recent high. Above there, the market should then go looking towards the $20.00 level with a bit of more bullish pressure.

SILVER Video 19.02.20

To the downside, the market breaking down below the 200 day EMA would be very negative, perhaps reaching down below the $17.00 level as well, offering a bit of a “one-two punch” when it comes to negativity. I don’t think that happens anytime soon, because quite frankly central banks around the world continue to loosen monetary policy.

That being said, the market is likely to offer plenty of buying opportunities to build up a larger core position. I like silver, and I do believe that it has some catching up to do when it comes to gold. Ultimately, the market has been basing for some time, so it makes quite a bit of sense that silver finally rally significantly as we have been waiting for some type of strength. This is a clear run to safety as the US dollar has been strengthening quite stringently at the same time.

This article was originally posted on FX Empire

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