Silver Price Forecast – Silver Markets Continue to SlumpSilver markets have slumped over the last several sessions, looking very much like a market that is ready to rollover. At this point, the $14 level has been crucial and so far, has held.
Silver markets have been drifting a bit lower over the last couple of days, as we said above the $14.00 level. If we can break down below that level, then it’s likely that we go much lower, perhaps down to at least to the $13.00 level, possibly even lower than that. I would anticipate a certain amount of support at the $13 level though, as it is the top of the previous consolidation area, and therefore a certain amount of “market memory” could come into play.
SILVER Video 02.04.20
Even if we break below the $13 level, the $12 level will also be extraordinarily supportive as well, as the area had caused a major bounce. That of course should have a certain amount of buying pressure built into it, so I think somewhere between the $12.00 level on the bottom and the $13.00 level above there we should see a certain amount of value hunting. The market making a “higher low” could be the beginning of a complete turnaround. However, if we were to break down below the $12.00 level, then it’s likely that we will then go to the $10.00 level next as it is a major support level on longer-term charts.
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There is an alternate scenario where the market breaks above the $15.00 level, and simply takes off. I don’t think that is as likely, but it is a possibility. On that move I would anticipate that we would first go looking towards the $16.00 level, perhaps pull back slightly, and then go looking towards $17.00 level. That being said, the fact that the industrial demand has fallen so precipitously leads me to believe that silver will struggle.