Silver Price Forecast – Silver markets continue to show strength although overbought

The Silver markets initially pulled back during the trading session on Tuesday, reaching down towards the $16.25 level. At this point, it looks like we should continue to go higher, but we are getting a bit overextended.
Christopher Lewis
Silver daily chart, July 24, 2019

First off, we tell you that I am very bullish of silver. I believe silver goes much higher over the longer-term but we have gotten a bit overbought. The candlestick looks like it means we are trying to reach higher, but round figure underneath at $16 should continue to attract a lot of attention, as markets tend to pay attention to these places. The level being broken isn’t necessarily a sell signal, but rather a sign that we are going lower, perhaps looking for value. The $15.50 level is another level that could come into play as well, so I would be interested in buying down there when we see some kind of bounce.

SILVER Video 24.07.19

The 50 day EMA has just crossed the 200 day EMA below, which makes it a ‘golden cross’, a well-known long-term buying signal for trend traders. The move recently has been rather strong, but it is also getting a bit parabolic. While we know the Federal Reserve is likely to cut rates, the real action will be found after the interest rate statement, and the press conference. The ‘bottom’ of the market is the $15.00 level, and any break below that level would be a massive turn of events – and possible trend change. I would be surprised to see this happen, but we always have to be cognizant of all possibilities, and that is one to be honest. Its unlikely, but beware of the $15 level, and its importance going forward. This is all about the Federal Reserve at this point.

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