Silver Price Forecast – Silver Continues to UnderperformSilver markets fell a bit during the trading session on Monday to kick off the week and sliced below the $15 level. That being said, there is a significant amount of support down to the $14 level, so I am not necessarily willing to sell this market.
Silver markets initially tried to rally during the trading session on Monday to kick off the week but then broke back below the $15 level to show signs of weakness again. Ultimately, this is a market that looks as if it is trying to dig into the massive support level underneath, which extends all the way down to the $14 level. While this chart does not look that great, the reality is there is a lot of support underneath as well. Ultimately, this is a market that will continue to see a lot of noise underneath, so therefore I do not necessarily think that this is a market that should be sold into.
SILVER Video 05.05.20
That being said, I also expect silver to underperform gold, so if you are looking to make the “precious metals trade”, then you need to be buying gold. Keep in mind that silver is also an industrial metal, so that is something to pay attention to that being the case, the market is likely to continue to see a lot of lackluster performance in silver. Do not get me wrong, the silver market is one that I believe goes higher over the longer term, but you need to be overly cautious about any type of leverage that you put into the market. Ultimately, this market sees the 50 day EMA above at the $15.52 level, and at this point it has continued to offer a lot of noise and downward pressure. I think at this point we are going to see a lot of back and forth momentum, but movement is going to be rather erratic.
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