Silver Price Forecast – Silver markets break down again on Friday

Silver markets broke down rather significantly during the day on Friday, clearing the $14.50 level. This is a major turn of events, and a continuation of what we have seen for quite some while, but at this point we are accelerating the negativity.
Christopher Lewis
Silver daily chart, May 20, 2019

Silver markets broke down a bit during the trading session on Friday, slicing through the psychologically important $14.50 level. As we have broken through that level, it’s very likely that we go looking for $0.25 intervals underneath. In other words, I have targets of $14.25 and $14.00, respectively. I think that given enough time; the market will find value hunters but it’s obvious that the market has a way to go before we get there.

SILVER Video 20.05.19

Pay attention to the US dollar, because if it strengthens, like it has been doing, that is typically bad for the silver market. Money has been flowing into both the United States stock markets and treasuries recently, so that is a bit of a “double whammy” for US dollar strength. At this point in time, it’s really difficult to get long in the silver market. That being said, I believe that as soon as we get some type of stability in the US dollar, this market will probably turn right back around.

Longer-term, I do believe in the silver market but I think the next several days will more than likely be very negative, and I would also be skeptical of short-term rallies. We had tried to break above the top of the falling wedge and have completely failed. That should be essentially a capitulation of buying pressure by the bullish traders out there, and now I believe that it’s relatively obvious as to which direction we go in general over the next several days.

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