Silver Price Forecast – Silver markets continue to rotate

Silver markets have been a bit choppy over the last couple of days, showing signs of rotation around the $14.50 level. This is a market that has been sold off rather drastically over the last several months, and of course will be very sensitive to the economic situation around the world.
Christopher Lewis
Silver daily chart, May 22, 2019

Silver markets continue to go back and forth during the trading session on Tuesday, as we see a lot of volatility in the economic markets. At this point in time, you should keep in mind that silver isn’t necessarily a safety trade, as there are a lot of multiple reasons to think that there will be a lot of different problems. Ultimately, this is a place that is sensitive to the US dollar, which will of course strengthened during the fear.

SILVER Video 22.05.19

That being said, if we can continue to see the global markets worry about trade, it’s very likely that silver will fall apart, as it is an industrial metal more so than a precious metal. Unlike gold, people won’t necessarily pile into silver for safety. This is all about US/China trade relations, and whether or not industrial companies will need more silver. It’s not a matter of supply, because quite frankly most silver is already spoken for by the time it leaves the ground.

To the downside, if we break down below the last couple of days I think we will then go to the $14.25 level, and then the $14.00 level. To the upside, breaking above the $14.85 level it would show a complete change in the attitude of the market but quite frankly it looks very likely that we will sell off rallies anytime there’s some type of exhaustion. Overall, this is a market that has a very negative bias.

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