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Silver Price Forecast – Silver Markets Continue To Show Bullish Pressure

Christopher Lewis

Silver markets rallied significantly during the trading session on Thursday, as we continue to see precious metals rally significantly due to various issues, not the least of which will be massive amounts of money flowing out of China. Beyond that, we also have a lot of central banks around the world providing a lot of liquidity and that of course has people worried about fiat currencies losing massive amount of value. Ultimately, this is a market that will continue to find buyers, but it has gotten a bit overextended at this point, therefore looking for value is probably where we go from here.

SILVER Video 27.12.19

At this point, I believe that the 50 day EMA will offer dynamic support, and part of the overreaction probably was due to the fact that we are between the major holidays. This does suggest that we are in an uptrend though, and that we will eventually break out towards the highs again. We have seen the silver market bounce quite nicely, right along with the gold markets, and it now looks like short-term pullbacks will be thought of as value that you can take advantage of, and quite frankly I think you need to find a bit of value in order to take advantage of what looks to be a major shift in attitude. I have no interest in shorting silver at this point, so therefore it’s a simple matter of waiting for the market to pullback so I can pick up sober “on the cheap.” It’s not until we break down below the 50 day EMA that I would even remotely consider shorting this marketplace. Otherwise, if we break above the $18.10 level on a daily close, that might be a buying opportunity as well although not as attractive as a pullback.

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This article was originally posted on FX Empire