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Silver Price Forecast – Silver Markets Failed To Impress Again On Friday

Christopher Lewis

Silver markets initially tried to rally during the trading session on Friday but gave back quite a bit of the gains to form a relatively neutral candlestick. Ultimately, silver continues to be stuck between the 200 day EMA as support just below, and the 50 day EMA as resistance just above. All things being equal, looks as if we are ready to continue going sideways, because quite frankly the market doesn’t look very convinced in one way or the other. Remember, the silver market had recently been rallying due to a “risk off” type of scenario, but since the Federal Reserve has changed its stance as far as cutting rates is concerned, silver has struggled that right along with its cousin gold.

SILVER Video 16.12.19

Ultimately, we are now starting to face the idea of the US/China trade negotiation being positive, and as a result that could help with a bit of a “risk on” type of trade. If that’s going to be the case then precious metals will probably suffer, right along with other “safety assets.” Ultimately, we have the 200 day EMA sitting just above the 61.8% Fibonacci retracement level, and that of course is an area that will attract a lot of attention. At this point, short-term back-and-forth trading is probably going to be what we see more than anything else. However, we had recently broken through a major uptrend line, and that of course is something worth paying attention to. It looks at this point as a silver is simply going to grind away in this region.

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This article was originally posted on FX Empire

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