Silver Price Forecast – Silver markets break the trend line

Silver markets broke down during the trading session on Friday, reaching down towards a couple of supportive areas, but quite frankly the move was rather drastic, showing signs of extreme negativity. With that being the case, it’ll be interesting to see what happens next.
Christopher Lewis
Silver daily chart, September 30, 2019
Three silver bars of different weight. The surface of cast silver bullion

Silver markets broke down significantly during the trading session on Friday, reaching down towards the 50 day EMA which is painted in red on the chart. At this point, the market is currently stabilized there, which of course is crucial. Having said that, it’s likely that the market is also paying attention to the gap from several weeks ago, which is currently being filled. That is something that you see a lot in the futures markets, so it makes sense that Silver would do the same. The question now is whether or not the 50 day moving average can hold.

SILVER Video 30.09.19

We broke down through trend line, but it doesn’t necessarily mean that it’s the only trend line. Quite frankly I can also put several different trendlines underneath that should continue to offer support. With that, I think that we probably have a significant amount of support underneath to turn markets around, but the question isn’t whether or not it’s going to be there, but when it happens. Waiting for a supportive daily candle is probably paramount at this point, and it should be noted that the 50% Fibonacci retracement level is just below at the $17.00 level. With that in mind I think it’s probably only a matter time before we get a bit of a bounce. However, being patient will be crucial, because we have seen such a brutal selloff as of late. I will keep you informed. FX Empire when I see the signal to start going long, but quite frankly I’d be hesitant to do so right now.

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