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Silver Price Forecast – Silver markets exploded to the upside again

By:
Christopher Lewis
Updated: Jul 17, 2019, 16:48 GMT+00:00

The silver market rallied significantly during the trading session on Wednesday again, breaking above the $15.75 level. Ultimately, this is a market that looks as if it is ready to go to the $16.00 level, a target that I have been calling on for some time. After the action on Wednesday, it seems as if it’s all but a technicality.

Silver daily chart, July 18, 2019

Silver markets broke above the highs of the previous session on Wednesday, showing signs of real strength. By breaking above the $15.75 level, it suggests that we are ready to go to the next major level, the $16.00 level. Underneath, I see the $15.50 level as support, as it was a previous resistance barrier, and therefore it’s likely that the area should offer a lot of support. I think that it is only a matter of time before the buyers would come back in that area. If we did break down below the $15.50 level, then the market will more than likely look towards the 50 day EMA, or perhaps even the 200 day EMA.

SILVER Video 18.07.19

We are a bit overextended at this point, and at this point I think that it is only a matter time before we get some type of value play, and obviously shorting Silver right now would be very difficult. Signs of exhaustion could be hints to get out of the market, but I think it’s much easier to buy that short-term pullbacks. Overall, this is a market that shows that it understands that the Federal Reserve is going to be cutting interest rates, and that should drive up the value of precious metals in general. That being the case, I believe that we will not only reach towards the $16.00 level, but possibly higher than that.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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