Silver Price Forecast – Silver Markets Continue Consolidation

Silver markets rallied slightly during the trading session on Thursday to show signs of life again. It looks as if we are consolidating in general, and therefore it would not be a huge surprise to see this market bounce towards the 50 day EMA. Underneath, we have the 200 day EMA in effect offering support, and of course the 61.8% Fibonacci retracement level just below there. With that in mind I think that it is only a matter of time before we see that level tested, and if it gives way to the selling pressure it’s likely that silver will continue to go much lower. Because of this, rallies are likely to be sold into. Beyond that, you should also pay attention to the fact that there is a trend line that has been broken, and now is substantially offering resistance as we have seen over the last couple of weeks. At this point, silver is in a somewhat precarious position.

SILVER Video 06.12.19

If we were to break down below that level the uptrend is probably all but over. At that point I would anticipate that silver would go looking towards the $16 level followed by the $15 level. On the other hand, if we were to turn around a break above the 50 day EMA and that previous trendline, then we could go looking towards the $18 level, but I think all things being equal this is a market that is probably more susceptible to downward pressure than up. Without the Federal Reserve threatening to cut interest rates, precious metals have struggled.

Please let us know what you think in the comments below