Silver Price Forecast – Silver Markets Fail To Hang On To Gains

Supermarkets got absolutely annihilated after trying to rally during early trading on Monday, as the $18 level offered far too much in the way of resistance. With this, the market looks as if it isn’t ready to go anywhere quick.
Christopher Lewis
Silver daily chart, October 22, 2019

Silver markets continue to be almost impossible to hang onto for any length of time, as we simply bounce back and forth from the 50-day EMA. If you have the ability to trade silver from the short-term timeframe, then you may be able to take advantage of this type of trading. However, if you are looking for a longer-term trade that’s all but dead at this point. The market had initially tried to break above a descending triangle trendline and go higher, but it has given up the gains rather quickly. In fact, it was quite brutal, so it tells you that silver isn’t ready to do anything special yet.

SILVER Video 22.10.19

To the downside, it’s very likely that the $17.00 level will continue to offer support on its own, so quite frankly this is a market that is to be scalped and nothing more. While I do believe in the longer-term outlook for silver, the reality is that it is simply waiting for some type of catalyst to get moving. At this point, there is no catalyst so quite frankly I don’t see any reason to be involved. If you have the ability to day trade that it obviously is quite a different story. The 50-day EMA continues to be a bit of a magnet so you can look at it as Bollinger Bands essentially. Fading extreme moves will work until a dozen, and then we should see a real move. However, that could be several days if not weeks.

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