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Silver Price Forecast – silver market finds sellers

By:
Christopher Lewis
Updated: Nov 20, 2018, 17:30 UTC

Silver markets have fallen rather hard during trading on Tuesday, breaking through the bottom of the malformed hanging man for the session on Monday. The previous uptrend line in the 50 day EMA have both offered resistance, and it now looks as if the downtrend continues.

Silver daily chart, November 21, 2018

Silver markets have formed a very bearish candle stick for the trading session on Tuesday, reaching towards the $14 level at this point from what I can see. The uptrend line that we previously had seen in this market has proven itself to be resistive, just as the 50 day EMA has. Because of this, I think it makes a lot of sense that we go down to the $14 level, perhaps even lower than that. A break down below the lows should send this market down to the $12 level longer-term.

SILVER Video 21.11.18

However, if we turn around and break above the 50 day EMA, and more importantly close above that on a daily chart, then the market could go as high as $15. I think the massive amount of bullish pressure in the US dollar will continue to push silver lower, as is the typical correlation. I think it is only a matter of time before the sellers reenter this market, and it now looks very obvious to me that silver is probably going to retest the major support level again. I also believe it is probably going to break down based upon longer-term charts, as we have seen a major uptrend line on the twenty-year chart get broken recently.

I suspect that the $12 level will have a lot of support down at the $12 level, but it could be rather noisy in the process. I believe in silver longer-term, but obviously we have plenty of short-term bearish pressure.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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