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.

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