Silver Price Forecast – Silver markets break out

Silver markets broke higher again during the trading session on Tuesday, as we have broken above the $19.00 level during early trading. That being said, the market is overextended to say the least.
Christopher Lewis
Silver daily chart, September 04, 2019

Silver markets have rallied significantly yet again during the trading session on Tuesday as we have gotten far too ahead of ourselves. Now that we have broken above the $19.00 level, it’s likely that we will see a little bit of a pushback. Quite frankly, this market tends to move in the $0.50 increments, so I will be looking for supportive levels every $0.50 below to take advantage of any type of value. Silver I think goes much higher, but I recognize that the market is far too overextended to get in now. At this point, the market is likely to continue to see a lot of volatility and as people are running away from anything related to risk, and therefore they have been jumping into precious metals.

SILVER Video 04.09.19

Silver has outperformed gold, perhaps forming some type of catch-up trade. Ultimately, I think that the “floor” in the market is closer to the $17.00 level underneath, and therefore I would be all over some type of pullback towards that area. The 50 day EMA is just below that level, and the 200 day EMA is starting to reach towards the $16.00 level as well. Ultimately, I think that short-term pullbacks will continue to be nice buying opportunities and although I see this market breaking down rather significantly, I think that is going to offer a buying opportunity after the dust settles. I would not short this market, because a market can remain much more irrational than I can remain insolvent. Overall, I think that the market is one that you should be looking for value in.

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