Silver Price Forecast – Silver Markets Recover After Selling Off

Silver markets initially fell during the trading session on Tuesday, reaching towards the $18.00 level. The level of course is a large, round, psychologically significant figure, and therefore it will attract a lot of attention. Underneath, the 50 day EMA is starting to turn higher, reaching towards the $17.50 level. All things being equal, this is a market that continues to be very noisy and driven by headlines, but ultimately it is worth paying attention to considering that silver not only has a risk asset feature to it, but it is also an industrial metal.

SILVER Video 08.01.20

If the market breaks to the upside, the next barrier will be the top of the shooting star from the Monday session. If that gets broken to the upside it would be a very bullish sign and should send silver looking towards the $20 level over the longer term. In the short term, we are probably going to be looking at a move towards the $19.00 level, but it is a minor level to say the least. To the downside, if we were to break down below the lows from last week, the 50 day EMA would be the initial target, followed by the $17.00 level. Currently, the market is testing the bottom of a major uptrend line, which should cause resistance. So far that has held but breaking to the upside of course would be very bullish as well, offering a sign that we are going to go much higher. Looking at this choppiness, it’s obvious that the markets are building up pressure to make a move in one direction or the other.

Please let us know what you think in the comments below