Silver Price Forecast – Silver markets continue to chop sideways

Silver markets went back and forth during the trading session again on Wednesday, perhaps taking a bit of a break after the significant breakdown that we had seen last week. Ultimately though, this is a market that is on the precipice of possibly making a bigger move.
Christopher Lewis
Silver daily chart, May 23, 2019

Silver markets went back and forth during the trading session on Wednesday, as we continue to see a lot of volatility globally. Silver markets are taking a bit of a break after falling below the $14.50 level, which makes quite a bit of sense considering that it was a very exhaustive move. If we can break down below the $14.25 level then it opens up the door to the $14.00 level. Alternately, if we rally above the $14.50 level, then we could have an opportunity to sell from higher levels.

SILVER Video 23.05.19

At $14.85 I think there is a significant amount of resistance. Anywhere near there where we see signs of exhaustion I would be more than willing to short silver. The opposite scenario of course is that we get a daily close above the $14.85 level, which opens up the door to testing the $15.00 level. Once we break above there, it would be a complete change of the overall attitude of the market, perhaps opening the door to the $15.50 level and even the $60.00 level after that.

All things being equal though, I do think that the Silver markets are going to continue to struggle. I do prefer selling short-term rallies that show signs of exhaustion, as there are a lot of concerns when it comes to global trade. Remember, silver is somewhat precious, but it’s more of an industrial metal than anything else. We have been drifting lower for some time, and at this point I don’t think there’s any point in trying to fight this.

Please let us know what you think in the comments below

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