Silver Price Forecast – Silver Markets Slam Into 50 Day EMA

Silver markets rallied significantly during the trading session on Tuesday, slamming into the 50 day EMA. This is an indicator that of course has caused a bit of support and resistance more than once, and as a result it’s not a huge surprise to see that the market stalled at this area. It got an initial boost during the day as Donald Trump suggested that perhaps the Chinese deal could wait until after the election. At this point, it’s difficult to imagine that trading this market is going to be easy, because it has been grinding lower for so long.

SILVER Video 04.12.19

The 200 day EMA sits underneath that should continue to attract a lot of attention, and therefore it should be thought of as essentially the “floor” in the market. At this point, I think that the market will continue to pay close attention to it, and at this point the question now will be whether or not the markets take Donald Trump seriously with this latest comment. The reality is that comments cause a lot of damage to the market, and it’s likely that we will continue to see it go back and forth based upon the algorithmic trading. Algorithmic trading simply reacts, but it doesn’t think. At this point, it’s possible that we rally, but the reality is that it would not be surprising at all to see this market simply drift lower. I think we need more of a reason to break higher than what we have, so at this point I am a bit skeptical of this rally.

Please let us know what you think in the comments below