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Silver Price Forecast – Silver markets break down

Silver markets fell hard during the trading session on Thursday, reaching down towards the 23.6% Fibonacci retracement level. Because of this, it’s very likely that the market is going to respect the $18.50 level, at least for the short term.
Christopher Lewis
Silver daily chart, September 06, 2019

Silver markets broke down rather significantly during the trading session on Thursday, reaching down towards the $18.50 level. That being said though, the market has bounced a bit from there and I think what we are probably going to see is a little bit more downward pressure based upon “risk on” trading than anything else. All things been equal though, we feel that there is plenty of support underneath to keep this market afloat. The gap down near the $17.50 level is of course crucial and could very well attract a lot of attention. After all, futures markets hate gaps, so it’s very unlikely that it will be left alone.

SILVER Video 06.09.19

In that area I would expect to see a lot of buying pressure, and I do think that it would only be a matter time before we would find some type of buying opportunity, and beyond that you also have the 50 day EMA in that range, or at least heading towards it. At this point, it’s only a matter of time before the markets turn around and rally again because quite frankly this is a market that is extraordinarily bullish but as Silver was up almost 15% during the month of August alone, it needed to pull back. With more of a “risk on” attitude around the world after the US and China have noted that there are talks coming soon, that means that some of the safety trade had to be unwound a bit. All things being equal though, we all know that it’s only a matter of time before something happens again in this market turned right back around.

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