Silver Price Forecast – Silver Markets Continue ConsolidationAt this point, it is likely that the market will continue to grind back and forth.
Silver markets continue to see a lot of noise in both directions, as we had recently seen a massive move higher. At this point, it looks likely that the market continues to see a lot of back and forth, and I do not see that changing in the short term. Just above the $18 level it is likely that the gap that appeared in February will continue to be at the very least a psychological barrier. Yes, the gap has been filled but a lot of times these gaps continue to have at least somewhat of an effect in the future.
SILVER Video 28.05.20
If we can break above the little gap though, then it is likely that we could go to the $19 level above. At this point, the market is likely to see even more resistance, but raking through the $19 level clearly would open up the door to the $20 handle. On the downside, the $17 level is massive support that if we break down below it is likely that we will go looking towards the 200 day EMA which is closer to the $16.40 level, and then the $16 level after that as it was massive resistance previously.
That should be supportive now, so keep that in mind. All things being equal, this is a scenario where think buyers will come in on dips more than anything else, but I would wait for silver to get a bit “cheaper” in order to take advantage of what has been a very bullish run.
For a look at all of today’s economic events, check out our economic calendar.