Silver Price Forecast – Silver Markets Break Through $18Silver markets broke down significantly during the trading session on Wednesday, as we have broken through the $18 level.
Silver markets broke down significantly during the trading session on Wednesday, slicing through the bottle $18 level in order to reach through to the consolidation between $17.20 and $18. By doing so, the market looks highly likely to continue to see a lot of support in this general vicinity, and quite frankly this pullback is something that is probably necessary. At this point it is probably more of a “gravity” issue than anything else. The market had gotten far ahead of itself and the US dollar had been sold off, so it is not a currency headwind at this point.
Having said that, the market is also influenced by industrial demand, something that needs to be addressed as although stocks continue to go straight up in the air like there is no such thing as gravity, the reality is there is going to be a lack of demand for silver going forward and perhaps people are starting to pay attention to this. With that in mind, it is not a huge surprise to see this market fall the way it has, and I think it will probably continue down towards the $17.20 level.
SILVER Video 04.06.20
The “golden cross” has just happened, which is typically a lagging indicator that tells you it is time to go in the other direction. Because of this, I would keep a keen I on the $17 level as it could be a crucial spot on this chart longer-term. If that level gets violated, then longer-term bearish pressure will probably come into play. From an investment standpoint I like silver, but from a trading standpoint I think it is far overvalued in the short term. Because of this, it is a bit of a “two speed market.”
For a look at all of today’s economic events, check out our economic calendar.