Silver Forecast – Silver Has Found Buyers After Initial Drop

NEW YORK (Dec 17) Silver has initially fallen during the trading session on Friday, to break down below the $23 level. By doing so, the market looks as if we are going to turn things back around and form a bit of a hammer, which of course is a bullish candlestick. If we break above the highs, then the market is likely to go looking toward the high of Thursday, which is just above the $24 level.

It is probably also worth noting that the 50-Day EMA is now in the midst of crossing above the 200-Day EMA, in a phenomenon known as a “golden cross”, a lot of longer-term traders will look at this as a bullish sign for a longer-term “buy-and-hold” kind of situation. On the other hand, it does tend to show up quite late, so you can only read so much into it.

If we break down below the bottom of the candlestick for the trading session on Friday, then the market could drop down to the $22.20 level, but we will have to wait and see whether or not that actually plays out. If that were to happen, there is a gap in that general vicinity, and therefore it could also offer quite a bit of support as well. Anything below there could send the market much lower, but at this point in time we need to pay attention to the US dollar. If it were to suddenly take off that could weigh upon the silver market, but there are times where both can rise, so therefore I think it’s only a matter of time before we see some type of big move in both assets.

FXEmpire