Silver Price Forecast – Silver Threatens Major Breakout

NEW YORK (July 13) Silver looks as if it is ready to breakout, but it’s worth noting that the candlestick for the Thursday session is rather subdued, but we also had a major candlestick on Wednesday that showed a lot of momentum jumping into this market. If we can break above the $24.50 level, then it’s possible that we could go looking to the $25 level, which is the next large, round, psychologically significant figure. After that, then you have the $25.50 level offering a bit of an area of importance as well, as we have seen a lot of selling pressure at the top of a massive negative candle.

If we pull back from here, the market is likely to see a lot of support, especially near the $24 level, and then of course the 50-Day EMA, but ultimately I think this is a situation where markets pulling back gives us a bit of an idea as to where we could jump in and find a little bit of value. Keep an eye on the US dollar, because it does have a bit of a negative correlation to the silver market, and therefore they tend to move in opposite directions. They don’t have to, but it is something that tends to be the case over the longer term.

In general, this is a situation where silver continues to benefit from the greenback losing its strength, but if we do get a little bit of a pullback, it would make an opportunity for people to pick up “cheap silver”, therefore let the market offer enough value that people will jump in and start buying again. All things being equal, this is a situation where we have seen a massive move to the upside, and it does suggest that the market will continue to go higher. That being said, the market is likely to continue to see value offered occasionally, and that being the case, the market is likely to see a lot of noisy behavior, but I still favor the upside as Silver has shown itself to be so strong. With this being the case, I don’t have any interest in shorting until we break down below the 200-Day EMA.

FXEmpire