Silver Price Forecast – Silver markets continue to hold trend line

Silver markets fell a bit during the trading session on Thursday but continue to find support at the same trend line that has kept them up the entirety of the summer.
Christopher Lewis
Silver daily chart, September 20, 2019

Silver markets fell initially on Thursday but found enough support at the summer long trend line that has been so crucial. That being the case it looks as if the market is ready to make some type of decision, but it should be noted that there are several things underneath that should offer support beyond the trend line.

SILVER Video 20.09.19

The 50 day EMA is currently just above the $17.25 level, and of course there is a gap that is focused on the $17.50 level. Both of these should offer significant support even if the trend line doesn’t hold itself. Beyond all of that, there is also the Federal Reserve recently cutting rates and looking very likely to do so again if needed. Central banks around the world have been cutting so it is probably only a matter time before the Federal Reserve has the do it again, and therefore there should be a bit of a “floor” in the precious metals markets to begin with.

Silver gained 15% in August, so it’s not a huge surprise that it has needed to grind back and forth for most of September. Those are historic and monumental gains, so therefore it takes quite a bit of digestion to get the market to continue to go higher. That being said, I do fully anticipate that the buyers will return and trying to reach towards the $20.00 level again which of course is a large psychologically important figure. In short, we have simply got there too quickly the last time. Now that we have pulled back and scared some of the “weak hands” out of the market, it is only a matter of time before we try it again.

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