Silver Price Forecast – Silver Markets After Gapping Higher

Silver markets initially gapped higher to break above the $18.00 level before rolling over again and reaching towards the bottom of the candlestick from the Friday session. The Friday session of course was a shooting star, so this is a very interesting set up.
Christopher Lewis
Silver daily chart, October 29, 2019
Precious metals

Silver markets gapped higher at the open for the week, showing signs of strength again, but then pulled back towards the bottom of the shooting star from Friday. We have seen some support in that area, so it will be interesting to see how this plays out from here. All things being equal, this is a market that is still in an uptrend, and although the Friday session didn’t close as bullish as initially thought, the market has broken through a potential downtrend line and more importantly has continued to obey the 50 day EMA to show signs of buying.

SILVER Video 29.10.19

The uptrend line is underneath there and has been respected as well. Beyond that, the market has shown trouble at the $18.00 level more than once so don’t be surprised if it takes a bit of momentum building to get above there. The 50 day EMA will of course offer support, just as the uptrend line and the $17.00 level. If the market was break down below the $17.00 level, this would be a very negative turn of events. With that being said, it is very likely that this market will be waiting for the Federal Reserve FOMC Statement on Wednesday. At this point, it’s very likely that the market will continue to see upward pressure overall, so therefore it’s likely that buying on the dips continues to show the way forward for longer-term traders. If we did break down below the $17.00 level though, then the 200 day EMA would probably be targeted.

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