Silver Price Forecast – Silver markets close out weak strong

Silver markets rallied rather significantly as precious metals skyrocketed during the day on Friday. We are cleanly above a couple of technical levels and approaching a major one in the distance.
Christopher Lewis
Silver daily chart, January 28, 2019

Silver markets exploded to the upside during the trading session on Friday, reaching towards the $15.75 level. At this point, the market has shown a proclivity to go higher, after the initial breakout of the $15 level, and a pullback to the $15.25 level, and then a move to the upside. The market faces a significant amount of resistance at the $16 level, which of course is a large, round, psychologically significant figure. That being the case, I think that a short-term pullback may present itself, and at that point I think it’s likely to be a value prospect that most traders will pay attention to. Looking at the size of this candle, we have just wiped out four or five days, so it makes sense that we will see any dip met with enthusiastic buying.

SILVER Video 28.01.19

I suspect it will take a significant amount of momentum to finally break above the $16 level, but I do think we will. Pay attention to gold, as it is pressing a major resistance barrier in the form of $1300. If we break above that level, that will drag Silver higher right along with it. If and when we can break above the $16 level, I think the market will probably go towards the $17 level longer-term, but it is going to take a certain amount of time to get there. I don’t think it’s going to be easy, and it will take a significant amount of time. As far as selling is concerned, I have no interest in doing so until we break down below the $15 level, something that looks very unlikely.

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