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Silver Price Forecast – Silver markets continue to consolidate

By:
Christopher Lewis
Updated: Apr 29, 2019, 16:12 UTC

Silver markets went back and forth during the trading session on Monday, as we continue to see a lot of interest in the market at current levels. We are in the middle of a major technical pattern, so it should be interesting to watch.

Silver daily chart, April 30, 2019

Silver markets initially pulled back during the trading session on Monday, to test just below the $14.85 level. One thing that is obvious is that we have been forming a falling wedge, which of course is very important as it tends to be very bullish sign. Beyond that, we did bounce significantly during the day so that’s a good sign as well. However, it’s easy to see that there is significant resistance just above and therefore silver is going to have a hard time.

SILVER Video 30.04.19

So what’s my solution to this? It’s an answer that you probably won’t like, but it’s the truth. We simply have to wait for an impulsive candle stick to take advantage of. We need to see the market break above the top of the down trend line, and we also need to recognize that the 50 day EMA will cause some problems just above. But beyond a simple break of the pattern, I would also need to see the United States dollar drop a bit of value.

The alternate scenario is that we break down below to make fresh, new lows again. If we break down below the support line of the falling wedge, then it wipes out the pattern and we should then go down to the $14.50 level, and perhaps even the $14.00 level. In general, this market looks like it’s trying to turn around, but that always takes a lot of effort. The US dollar will be your secondary indicator when it comes to the precious metals markets.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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