Silver Price Forecast – Silver Markets Pull Back From the Top of the Range

NEW YORK (Jan 17) Silver has pulled back during the trading session on Tuesday, as we continue to hang around in the same consolidation range. By doing so, the market looks as if it is going to stay in more of a back-and-forth mode, which makes a lot of sense considering that it had risen so quickly to get to this level. Furthermore, the $25 level above looms large, and will be difficult to overcome. If we can break above that level, then things get really interesting, but between now and then, we will have to figure out whether or not silver can actually build up the necessary momentum.

The $24 level underneath is more likely than not going to be “fair value”, because it’s right about the middle of the consolidation range that we have been in. Ultimately, this is a market that I think will eventually have to make a bigger move, but right now we are trying to figure out what’s going to happen with the US dollar, the Federal Reserve, and of course the potential of people flying back into silver in order to do a little wealth preservation.

It’s worth noting that the 50-Day EMA sits just below the $23 level, so that is an area that could cause a certain amount of support. The market is probably going to look at that as a very important level, so if we were to break down below there we would probably see a bit of a “air pocket” down to the $22 level. Ultimately, this is a market that is going to be very choppy and volatile.

FXEmpire