Silver Price Forecast – Silver markets continue to test resistance

Silver markets rallied a bit during the trading session on Wednesday, reaching towards the $14.85 level, an area that has been a bit resistive. At this point, it looks as if we are still trying to figure out which direction to go, and as a result this is a market that you are going to need to be very patient with.
Christopher Lewis
Silver daily chart, May 16, 2019

The silver market went back and forth during the trading session on Wednesday, as the $14.85 level has caused a bit of resistance yet again. Beyond that, we have the downtrend line from the falling wedge that is sitting in this general vicinity, so it’s going to take a bit of momentum building to finally break out to the upside. If we do, that could be the beginning of something rather significant, but it isn’t necessarily going to be easy. Based upon the falling wedge, we could see a move towards the $16.00 level, as the pattern measures.

SILVER Video 16.05.19

That being said, if we break down below the $14.60 level it will completely negate the pattern, and it could send Silver down to $14.50, $14.25, and then finally the $14.00 level. Keep in mind that the US dollar will greatly influence where we go next, so if it starts to strengthen it’s very likely that silver will suffer. Alternately, if the US dollar weakens that could be the catalyst to send Silver higher. That being said, it doesn’t necessarily have to work that way, it’s just that longer-term it tends to work out as such.

There is the possibility of money flowing into the US dollar, via US treasuries, whilst picking up precious metals at the same time and for the same reason: safety. That being said, we have a couple of levels to pay attention to and that’s really all that you should be focused on.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US