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Silver Price Forecast – Silver Markets Continue to Form Base

By:
Christopher Lewis
Published: Mar 18, 2020, 15:43 UTC

Silver markets fell hard again during the trading session on Wednesday, breaking to a fresh, new low before turning back around. At this point, the market is likely to see more grinding which is a bullish sign and if it does in fact happen.

Silver

Silver markets broke down a bit during the trading session on Wednesday, slicing below the $12.00 level again. This is an area that is important on longer-term charts, but at this point I am looking to see whether or not it is going to hold. At this point, it does look as silver is trying to find a little bit of a base here, and I think if we can close on a daily chart above the $13.00 level, then it’s likely that the market goes looking towards the $15.00 level. At this point, that is a sign that the oversold condition is about to be corrected. However, keep in mind that silver is highly levered to industrial demand, and right now there are a lot of concerns as to whether or not there will be any.

SILVER Video 19.03.20

If we do break down below the lows and close below there on the daily chart, then I will be looking for the market to go down towards the $10.00 level where I will become even more interested in buying this market. At this point, I do believe that the value hunters will be all over it, but I think the “buy-and-hold” traders will also be very interested and $10.00 when it comes to silver. I think at this point it’s likely that the market will eventually find enough momentum to break to the higher levels, but it could be more of a process and quite frankly the more time we take to build up enough momentum to the upside, the better it will be because a lot of people will be convinced to join.

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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