Silver Price Forecast – Silver markets break the downtrend line

Silver markets rally during the trading session on Monday as we have seen quite a bit of fear creep back into the market. By doing so, we broke above the downtrend line, and as a result we are about to test quite a bit of resistance.
Christopher Lewis
Silver daily chart, June 04, 2019

Silver markets rallied significantly during the trading session on Monday, breaking through a major downtrend line, showing signs of strength. However, we have a couple of different things to pay attention to in the short term. For example, the $14.85 level has been important more than once, so I would anticipate a bit of selling in the short term. The $14.85 level being broken to the upside could open up the door to the $15.00 level, which of course is a large, round, psychologically significant figure.

SILVER Video 04.06.19

The previous downtrend line should be a buying opportunity based upon support, but if we were to break down through there it’s likely that the market will continue to go down towards the $14 level. Overall though, I think it’s very unlikely that we can move easily or quickly in one direction or the other without some type of headline risk or event. Remember, silver is considered to be a risk as said, but only secondarily, as it is more importantly thought of as an industrial metal. That means that it rises and falls with risk appetite in both directions, making it very messy indeed.

Instead of overthinking it, I believe that it’s this simple: if we break above the $15.00 level, it’s time to start buying. If we fail between here and there, then it’s time to start selling. Silver does tend to be very volatile, but if you keep your position size reasonable, you should be able to navigate the market.

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