Silver Forecast: Silver Pulls Back From Highs

NEW YORK (Dec 22) Silver has pulled back a bit during the trading session on Thursday, as it looks like the area above $24 will continue to be difficult to overcome. That being said, that does not necessarily mean that we suddenly have a negative market, just that we may have gotten ahead of ourselves in the short term. With that action, it looks like we could be trying to carve out a new trading range, perhaps with the $23 level underneath offering a bit of a bottom. If we break down below there, then it’s possible that we could go down to the $22 level, where it had gapped.

It is worth noting that the 50-Day EMA is near the $22 level as well, so that might be reason enough to think that it offers a bit of a floor. Any move below there opens up significant selling, but at this point I’m not necessarily concerned that we are going to make that move. After all, it appears that silver is very strong, and it does make sense that we could eventually go looking to the $25 level. Keep in mind that holiday conditions will be very illiquid, so it’s not surprising that we are seeing a bit of profit-taking, because why would you want to risk a bunch of money right now?

Longer term, it looks as if silver is going to continue to get a bit of a bid, but I also believe that we will probably continue to see more volatility as we move along. After all, a lot of “hot money” will be looking to chase this market, so expect big moves eventually.

FXEmpire