Silver Price Forecast – Silver Markets Pulled Back On Tuesday

Silver markets have fallen just a bit during the trading session on Tuesday, breaking below the 50 day EMA yet again. This is a market that continues to go back and forth around this indicator so it should not be a huge surprise to see that we have chopped through it again. With that being said, there is significant support underneath and I do still favor silver longer term. The central banks around the world continue to be very loose with monetary policy, and that is one of the biggest drivers for precious metals over the longer term.

SILVER Video 05.02.20

At this point, I look at the $17.00 level as a major support level that should be paid attention to, as it is a large, round, psychologically significant figure and it is also an area that features the 200 day EMA, an area that always seems to attract a lot of longer-term money in one direction or the other. In other words, there should be a certain amount of built-in demand near that region. At this point, I’m looking at silver as an opportunity to pick up a bit of value but I don’t have a signal to start buying quite yet so it’s a matter of sitting on the sidelines unless of course you are trying to build a longer-term core position, which then means that you can buy little bits and pieces on the way down going forward. All of that being said, if we were to break down below the $17.00 level, then it would be an extraordinarily negative sign.

Please let us know what you think in the comments below