Silver Price Forecast – Silver gap higher on Friday

Silver markets gapped higher on Friday, after forming a gapped lower on Thursday. This makes for what is known as a “Morning Star pattern”, which is very bullish. The fact that we are sitting on the uptrend line and the 50 day EMA also adds a lot of credence to the idea of going higher. I think ultimately we will probably go grinding towards the $16 level, which is the high recently, and of course a scene of massive amount of resistance. This market should continue to be very erratic, which is typical for silver anyway.

SILVER Video 18.02.19

The market breaking down below the uptrend line and the 50 day EMA could send this market lower, perhaps down towards the $15.25 level, and then eventually the $15 level after that. Looking at this chart, I think you can expect a lot of choppiness and trouble, so I would be very cautious about my position size as silver does tend to be very noisy. This is a market that should continue to be bullish longer-term, but the question is whether or not we can find buyers yet. Overall, I think that silver will go higher over the longer-term but given enough time we need to understand the volatility is something that makes holding large positions very dangerous. This will be especially true as we have so many geopolitical concerns. If we can get the EUR/USD pair breaking to the upside, that would show the softness in the US dollar, sending precious metals higher.

Please let us know what you think in the comments below