Silver Price Forecast – Silver Pulls Back Slightly
NEW YORK (July 17) Silver has pulled back just a bit during the trading session on Monday, as we continue to hang around the $25 level. The $25 level of course is a large, round, psychologically significant figure. The market has been a little overdone to the upside recently, so a bit of a pullback makes sense. After all, if the market is going to continue to go higher, it may have to pull back a bit in order to attract more buyers. After all, we have gone straight up in the air during most of last week as inflation numbers in the United States came out weaker than anticipated, so traders will look at this through the prism of trying to find a way to get more wealth preservation as bonds will start to pay less in interest.
That being said, the technical analysis is very strong and it does suggest that a pullback toward the $24.50 level makes for an interesting entry point, as it was recent resistance. Underneath there, if we were to break down below that level, then the 50-Day EMA comes back into the picture for support.
On the other hand, if we were to break out to the upside, then the market could you look into the $26 level, possibly even the recent highs which are closer to the $26.45 level given enough time. Pay close attention to the US dollar, because the negative correlation between the 2 markets seems to be coming back into focus, and that of course is very powerful to watch. The US Dollar Index serves as a great secondary indicator to this market, which of course is something that I will be watching very closely.
It is not until we break down below the 200-Day EMA that I would be interested in trying to short this market, something that doesn’t look likely to happen anytime soon as it is closer to the $23.25 level than anything else. With this, I think this market continues to be more or less a “buy on the dips” situation. Ultimately, I do think that we will test the highs again, but we may have a little bit of a pullback in the short term.
FXEmpire
