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Silver Price Forecast – Silver Markets Adrift On Major Holiday

Christopher Lewis

Silver markets have dropped slightly on the opening gap Monday, but for the most part did nothing during the holidays session in America. With that being the case it’s very likely that this market will continue to be quiet, but I do believe that it is only a matter of time before we have to make some type of decision. What I find interesting is that the massive shooting star from Thursday that tested the previous uptrend line, showing signs of resistance, followed by a hammer. Quite often, this means that the market will simply “kill time”, grinding sideways in order to feel comfortable in this area before breaking out further to the upside.

SILVER Video 21.01.20

However, if we are to break down below the bottom of the hammer from the Friday session, that means that we probably need to pull back a bit in order to find enough buyers. We also have the 50 day EMA getting ready to cross above the 200 day EMA, in a phenomenon known as the “golden cross.” That is typically something that bullish traders like, and therefore I believe it is only a matter of time before we see longer-term traders get involved as well. I’m looking for value, so if we break down below the bottom the hammer from the trading session on Monday, I will probably simply wait for support and a bounce to take advantage of. I don’t have any interest in shorting, at least not right now.

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This article was originally posted on FX Empire