Silver Price Forecast – Silver markets continue to find support underneath

Silver markets spent part of the day pulling back a bit during the trading session on Wednesday, reaching towards the $15.50 level. However, the market had found enough buyers in that area to turn around and start showing signs of life again. Quite frankly, this is a market that I think has plenty of support in the area of the 20 day EMA, closer to the $15.40 level. That being the case, I like the idea of buying silver, because quite frankly the Federal Reserve looks to be a bit dovish as of late.

SILVER Video 17.01.19

Beyond that, if you look at this chart you can make an argument for a bit of a bullish flag, or perhaps a pennant, but nonetheless what we do see here is that we’ve had a slight pullback after a strong move higher. The pullback being so slight tells me that there is real conviction underneath, and therefore it makes sense that we should continue to see people jump in. The $16 level above of course will be rather stringent in its resistance, but quite frankly I think it’s only a matter of time before we break above there as the US dollar starts the weekend.

For what it’s worth, I have been watching both the silver and the EUR/USD chart simultaneously, because they seem to be feeding off of each other. At that being the case, if the Euro can rally and break out to the upside, sober most certainly will take off right along with it.