Silver Price Forecast: Silver Continues to Look for Buyers

NEW YORK (May 18) Silver has fallen again during the trading session on Thursday as we continue to see a lot of concerns around the world when it comes to global growth. Keep in mind that the market continues to see a lot of noisy behavior, but there is a huge concern when it comes to global demand because silver is a major industrial metal. As long as that is going to be the case, then it makes sense that we will have a bit of a “push/pull” type of situation. The 50-Day EMA is sitting above on top of the last couple of days, and therefore it makes a certain amount of sense that we would see that offer a short-term ceiling above. If we were to break above the 50-Day EMA, we could likely go looking to the $25 level given enough time.

Underneath, the market then could go down to the 200-Day EMA which is closer to the $22.80 level, and of course we have the 61.8% Fibonacci level, which attracts a lot of attention as well. That being said, if we were to break down below the 200-Day EMA, that would be a very negative turn of events. A lot of wealth preservation has been in the picture as of late, so it makes a certain sense that silver has attracted buyers. Whether or not it does in the short term remains to be seen, because we are starting to see a bit of an acceleration to the downside, which of course is something that a lot of people don’t like.

Ultimately, this is a market that had gotten a bit ahead of itself and has negated the idea of the bullish pennant taking off to the upside. Because of this, the market still is looking for buyers, but in the short term may have a little bit of trouble grabbing any type of support. If we do break down below the 61.8% Fibonacci level, then it’s likely that we could go all the way down to the $20 level below, which would obviously be a huge move to the downside.

FXEmpire