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Silver Price Forecast – Silver Markets Continue To Consolidate

Silver markets went back and forth during the trading session on Tuesday as we simply don’t look like we have anywhere to be right now. That being the case, it’s very likely that sideways action will continue to be a major influence in this market.
Christopher Lewis
Silver daily chart, October 16, 2019

Silver markets are likely to continue to be very noisy, as the global economic situation is the same. If that’s going to be the case, then it makes quite a bit of sense that the market is essentially waiting to figure out how certain things play out, including not the least of which will be the US/China trade relations, Brexit, and of course central banks around the world cutting interest rates and liquefy the markets. As long as that’s going to be the reality, gold and silver both should get some type of bid.

SILVER Video 16.10.19

To the downside, the $17.00 level should offer a significant amount of support, as the market has certainly seen a strong reaction every time he gets close to that level. If we were to break down below there, then the 200 day EMA comes into play. The 200 day EMA is currently found at the $16.28 level, and obviously a longer-term signal could be formed if we were to break down below there.

To the upside, the $18 level is obvious resistance, opening up the door to the $18.75 level, and then possibly even the $19.75 level. I still believe in the value of silver though, and I do like buying short-term pullbacks as they give us an opportunity to take advantage of the longer-term trend. Central banks, geopolitical issues, and of course recessionary fear should continue to power this market higher. August was 15% in gains, and since then we have been pulling back slightly to perhaps bring sanity back to the market. That pullback is just about over.

Please let us know what you think in the comments below

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